MAJOR CHANGES TO FEDERAL REMOVAL JURISDICTION IN 2012

Effective January 6, 2012, Congress enacted new legislation that affects how defendants in a lawsuit can remove a case from state court to federal court.  The Federal Court Jurisdiction and Venue Clarification Act of 2011 (the "Act") represents a significant shift in the availability and scope of federal removal jurisdiction.

While the Act contains many nuances, there are several changes that go to the heart of how and when cases may be removed to federal court.  One of those changes is the timing of removal in cases involving multiple defendants.  The Act now provides that each individual defendant has 30 days from the date they were served to remove the case.  This amendment resolves a major divide that had developed across federal courts throughout the country.  The Act also requires federal courts to sever and remand unrelated state claims that fall outside the court's supplemental jurisdiction.  The Act also makes revisions to the level of proof that must be shown when a defendant seeks to remove a case relying on diversity jurisdiction.

The Act is the legislature's attempt to provide uniformity across the federal circuits and eliminate various differences that had evolved over time between the courts.  These are just a few of the changes that are included within the Act, which will have a substantial impact on civil litigation in 2012 and beyond.