H.R. 3624 — what changed

changed This Act may be cited as the “Fraudulent Joinder Prevention Act of 2015”.2016”.

changed Section 1447(c) 1447 of title 28, United States Code, is amended by adding at the end the following: “A motion for remand, and any opposition thereto, may include affidavit or other evidence showing a plausible claim for relief against each nondiverse defendant, or the lack thereof, or indicating a good faith intention to prosecute the action against each nondiverse defendant or to seek a joint judgment, or the lack of such a good faith intent. The 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.”.following:

added “(f) Fraudulent joinder

added “(1) This subsection shall apply to any case in which—

added “(A) a civil action is removed solely on the basis of the jurisdiction conferred by section 1332(a);

added “(B) a motion to remand is made on the ground that—

added “(i) one or more defendants are citizens of the same State as one or more plaintiffs; or

added “(ii) one or more defendants properly joined and served are citizens of the State in which the action was brought; and

added “(C) the motion is opposed on the ground that the joinder of the defendant or defendants described in subparagraph (B) is fraudulent.

added “(2) The joinder of the defendant or defendants described in paragraph (1) (B) is fraudulent if the court finds that—

added “(A) there is actual fraud in the pleading of jurisdictional facts;

added “(B) based on the complaint and the materials submitted under paragraph (3), it is not plausible to conclude that applicable State law would impose liability on each defendant described in paragraph (1)(B);

added “(C) State or Federal law clearly bars all claims in the complaint against all defendants described in paragraph (1)(B); or

added “(D) objective evidence clearly demonstrates that there is no good faith intention to prosecute the action against all defendants described in paragraph (1)(B) or to seek a joint judgment.

added “(3) In determining whether to grant or deny a motion under paragraph (1)(B), the court may permit the pleadings to be amended, and shall consider the pleadings, affidavits, and other evidence submitted by the parties.

added “(4) If the court finds fraudulent joinder under paragraph (2), it shall dismiss without prejudice the claims against the defendant or defendants found to have been fraudulently joined and shall deny the motion described in paragraph (1)(B).”