House Judiciary Committee Debates Fraudulent Joinder Legislation

House Judiciary Committee Debates Fraudulent Joinder Legislation

The House Judiciary Committee heard testimony September 29 regarding the Fraudulent Joinder Prevention Act (H.R. 3624), which would amend 28 U.S.C. § 1447(c) to make it explicit that a “district court shall deny a motion to remand if it finds that the complaint does not state a plausible claim for relief against a nondiverse defendant under applicable State law or there is no good faith intention to prosecute the action against a nondiverse defendant or to seek a joint judgment.” Proponents of the bill say that the amendment would replace multiple standards currently employed by the courts to determine the viability of a nondiverse plaintiff’s claim with a single, uniform standard. Opponents say that the bill say that the phrase “plausible claim” will not yield greater uniformity and that the legislation is intended only to shield businesses from liability. [9/30/15]

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