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The Route to Federal Court Clarified

By John E. Goodman
February 28, 2012

An oft-recurring task for counsel (both inside and outside) is analyzing whether a new lawsuit filed in state court can properly be removed to federal court, or whether the client (often an out-of-state company) must be left to the tender mercies of the state forum. The passage by Congress of the Federal Courts Jurisdiction and Venue Clarification Act of 2011 (the JVCA or the Act) doesn't open the door to the federal courthouse a great deal wider, as the Class Action Fairness Act did. Nonetheless, the points of law settled by the JVCA may provide defendants with removal opportunities that they didn't have formerly, at least in some circuits. Further, in supplying uniform rules on a number of removal issues, the Act brings a measure of predictability to removal practice, which alone makes the statute significant.

The JVCA was signed into law on Dec. 7, 2011, and became effective on Jan. 6, 2012, applying to all cases removed to federal court on or after that date. While the statute also deals with jurisdiction, venue and transfer rules in the federal courts, this article focuses on the statute's most significant changes, those affecting removal from state to federal court. The most salient points of the Act as affecting removal are summarized below.

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