<enum>I</enum> <header>Fairness in Class Action Litigation</header> <section id="H483B58FAC75C4D6698BC06AFF6979643" section-type="subsequent-section"> <enum>101.</enum> <header>Short title; reference; table of contents</header> <subsection id="H1AB8BA5445974324B3B70148427F6504"> <enum>(a)</enum> <header>Short title</header> <text>This title may be cited as the <quote><short-title>Fairness in Class Action Litigation Act of 2017</short-title></quote>.</text> </subsection> <subsection id="H737ABD041A924549B127A939ED44C8BB"> <enum>(b)</enum> <header>Reference</header> <text>Whenever, in this title, reference is made to an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 28, United States Code.</text> </subsection> <subsection id="H4175FEB455F142368DE230B6CC8F7722"> <enum>(c)</enum> <header>Table of contents</header> <text>The table of contents of this title is as follows:</text> <toc container-level="title-container" quoted-block="no-quoted-block" lowest-level="section" idref="HA5E1D47346DF4C058D5B9EC573E97527" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"> <toc-entry idref="H483B58FAC75C4D6698BC06AFF6979643" level="section">Sec. 101. Short title; reference; table of contents.</toc-entry> <toc-entry idref="HD7E71BA9CBD64122B3AB90B8A09130E2" level="section">Sec. 102. Purposes.</toc-entry> <toc-entry idref="HCB2E33C4394541CDB8D4A8CEE6523715" level="section">Sec. 103. Class action procedures.</toc-entry> <toc-entry idref="H8465274546554426B974582C56D79CC9" level="section">Sec. 104. Misjoinder of plaintiffs in personal injury and wrongful death actions.</toc-entry> <toc-entry idref="H0CF24002F0364B5DB418B81DD3188923" level="section">Sec. 105. Multidistrict litigation proceedings procedures.</toc-entry> <toc-entry idref="HAEF083676E3F4636970A883F477526F0" level="section">Sec. 106. Rulemaking authority of Supreme Court and Judicial Conference.</toc-entry> <toc-entry idref="HEB70C1ABBDF244C58950597DA0DC7871" level="section">Sec. 107. Effective date.</toc-entry> </toc> </subsection> </section> <section id="HD7E71BA9CBD64122B3AB90B8A09130E2"> <enum>102.</enum> <header>Purposes</header> <text display-inline="no-display-inline"> The purposes of this title are to—</text> <paragraph id="H6DAD1718F6FE4976877805116F53E6CB"> <enum>(1)</enum> <text>assure fair and prompt recoveries for class members and multidistrict litigation plaintiffs with legitimate claims;</text> </paragraph> <paragraph id="HF6BE45A2A2CC46D79DF5F2842C477A41"> <enum>(2)</enum> <text>diminish abuses in class action and mass tort litigation that are undermining the integrity of the U.S. legal system; and</text> </paragraph> <paragraph id="HE52EDADE170142578A6F6C36CB52F4B6"> <enum>(3)</enum> <text>restore the intent of the framers of the United States Constitution by ensuring Federal court consideration of interstate controversies of national importance consistent with diversity jurisdiction principles.</text> </paragraph> </section> <section id="HCB2E33C4394541CDB8D4A8CEE6523715"> <enum>103.</enum> <header>Class action procedures</header> <subsection id="HBDFCCB591D594D2A9649632B5AC308AA"> <enum>(a)</enum> <header>In general</header> <text>Chapter 114 is amended by inserting after section 1715 the following:</text> <quoted-block id="HC97335340EE24664AD90BF819E794A14" style="USC"> <section id="H87E9702C07A04387B2B294B17D5C78C2"> <enum>1716.</enum> <header>Class action injury allegations</header> <subsection id="H7910A2C999DA46AB999AD0C296B62082"> <enum>(a)</enum> <header>In general</header> <text>A Federal court shall not issue an order granting certification of a class action seeking monetary relief for personal injury or economic loss unless the party seeking to maintain such a class action affirmatively demonstrates that each proposed class member suffered the same type and scope of injury as the named class representative or representatives.</text> </subsection> <subsection id="H34A7AD688A404A1AA729AD57ACC11E8A"> <enum>(b)</enum> <header>Certification order</header> <text>An order issued under Rule 23(c)(1) of the Federal Rules of Civil Procedure that certifies a class seeking monetary relief for personal injury or economic loss shall include a determination, based on a rigorous analysis of the evidence presented, that the requirement in subsection (a) of this section is satisfied.</text> </subsection> </section> <section id="H85FE361C834E4CA086D80B82197F7298"> <enum>1717.</enum> <header>Conflicts of interest</header> <subsection id="H36C167AA391B4CD19B733D30631A0BED"> <enum>(a)</enum> <header>Required disclosures</header> <text>In a class action complaint, class counsel shall state whether any proposed class representative or named plaintiff in the complaint is a relative of, is a present or former employee of, is a present or former client of (other than with respect to the class action), or has any contractual relationship with (other than with respect to the class action) class counsel. In addition, the complaint shall describe the circumstances under which each class representative or named plaintiff agreed to be included in the complaint and shall identify any other class action in which any proposed class representative or named plaintiff has a similar role.</text> </subsection> <subsection id="H760F139028B3462D8CCC70DE930B0D18"> <enum>(b)</enum> <header>Prohibition of conflicts</header> <text>A Federal court shall not issue an order granting certification of any class action in which any proposed class representative or named plaintiff is a relative of, is a present or former employee of, is a present or former client of (other than with respect to the class action), or has any contractual relationship with (other than with respect to the class action) class counsel.</text> </subsection> <subsection id="H4D8C152E40864CEA82B696F5726365B9"> <enum>(c)</enum> <header>Definition</header> <text>For purposes of this section, <quote>relative</quote> shall be defined by reference to section 3110(a)(3) of title 5, United States Code.</text> </subsection> </section> <section id="H46AF4DF3BF62411D87B0E8C5669C3EFA"> <enum>1718.</enum> <header>Class member benefits</header> <subsection id="HFA299119A8EA46E689602D8C1D8EAEB8"> <enum>(a)</enum> <header>Distribution of benefits to class members</header> <text>A Federal court shall not issue an order granting certification of a class action seeking monetary relief unless the class is defined with reference to objective criteria and the party seeking to maintain such a class action affirmatively demonstrates that there is a reliable and administratively feasible mechanism (a) for the court to determine whether putative class members fall within the class definition and (b) for distributing directly to a substantial majority of class members any monetary relief secured for the class.</text> </subsection> <subsection id="H54A69DA9C24844DDB229F0EC81B678FE"> <enum>(b)</enum> <header>Attorneys’ fees in class actions</header> <paragraph id="H08AB3E333CA0493AB0FC10DCBD5D6784"> <enum>(1)</enum> <header>Fee distribution timing</header> <text>In a class action seeking monetary relief, no attorneys’ fees may be determined or paid pursuant to Rule 23(h) of the Federal Rules of Civil Procedure or otherwise until the distribution of any monetary recovery to class members has been completed.</text> </paragraph> <paragraph id="HE9654F0A3DAB4DBB8F75E3656610FA54"> <enum>(2)</enum> <header>Fee determinations based on monetary awards</header> <text>Unless otherwise specified by Federal statute, if a judgment or proposed settlement in a class action provides for a monetary recovery, the portion of any attorneys’ fee award to class counsel that is attributed to the monetary recovery shall be limited to a reasonable percentage of any payments directly distributed to and received by class members. In no event shall the attorneys’ fee award exceed the total amount of money directly distributed to and received by all class members.</text> </paragraph> <paragraph id="H38686E59174D4DFFBC54F3093084461F"> <enum>(3)</enum> <header>Fee determinations based on equitable relief</header> <text>Unless otherwise specified by Federal statute, if a judgment or proposed settlement in a class action provides for equitable relief, the portion of any attorneys’ fee award to class counsel that is attributed to the equitable relief shall be limited to a reasonable percentage of the value of the equitable relief, including any injunctive relief.</text> </paragraph> </subsection> </section> <section id="H13D1A35D9DF24462BC22822486F3BA55"> <enum>1719.</enum> <header>Money distribution data</header> <subsection id="H7B08CC15DCF94EA6A30FEF25E3CA10E4"> <enum>(a)</enum> <header>Settlement accountings</header> <text>In any settlement of a class action that provides for monetary benefits, the court shall order class counsel to submit to the Director of the Federal Judicial Center and the Director of the Administrative Office of the United States Courts an accounting of the disbursement of all funds paid by the defendant pursuant to the settlement agreement. The accounting shall state the total amount paid directly to all class members, the actual or estimated total number of class members, the number of class members who received payments, the average amount (both mean and median) paid directly to all class members, the largest amount paid to any class member, the smallest amount paid to any class member and, separately, each amount paid to any other person (including class counsel) and the purpose of the payment. In stating the amounts paid to class members, no individual class member shall be identified. No attorneys’ fees may be paid to class counsel pursuant to Rule 23(h) of the Federal Rules of Civil Procedure until the accounting has been submitted.</text> </subsection> <subsection id="H3181092C31AC4FBBA37D299D18B46F43"> <enum>(b)</enum> <header>Annual settlement distribution reports</header> <text>Commencing not later than 12 months after the date of enactment of this section, the Judicial Conference of the United States, with the assistance of the Director of the Federal Judicial Center and the Director of the Administrative Office of the United States Courts, shall annually prepare and transmit to the Committees on the Judiciary of the Senate and the House of Representatives for public dissemination a report summarizing how funds paid by defendants in class actions have been distributed, based on the settlement accountings submitted pursuant to subsection (a).</text> </subsection> </section> <section id="HE6FAC0D0F38544079B6E339832ABA54D"> <enum>1720.</enum> <header>Issues classes</header> <subsection id="H8D6BF34BE7E44D98BDBB9BEC30001168"> <enum>(a)</enum> <header>In general</header> <text>A Federal court shall not issue an order granting certification of a class action with respect to particular issues pursuant to Rule 23(c)(4) of the Federal Rules of Civil Procedure unless the entirety of the cause of action from which the particular issues arise satisfies all the class certification prerequisites of Rule 23(a) and Rule 23(b)(1), Rule 23(b)(2), or Rule 23(b)(3).</text> </subsection> <subsection id="HC800F8D622534C95986689AE5CFF5D95"> <enum>(b)</enum> <header>Certification order</header> <text>An order issued under Rule 23(c)(4) of the Federal Rules of Civil Procedure that certifies a class with respect to particular issues shall include a determination, based on a rigorous analysis of the evidence presented, that the requirement in subsection (a) of this section is satisfied.</text> </subsection> </section> <section id="H507E71B27C2249E7807D63EF35D50C70"> <enum>1721.</enum> <header>Stay of discovery</header> <text display-inline="no-display-inline">In any class action, all discovery and other proceedings shall be stayed during the pendency of any motion to transfer, motion to dismiss, motion to strike class allegations, or other motion to dispose of the class allegations, unless the court finds upon the motion of any party that particularized discovery is necessary to preserve evidence or to prevent undue prejudice to that party.</text> </section> <section id="H2B9E73F691F84E5EB49A86D0B6AE697D"> <enum>1722.</enum> <header>Third-party litigation funding disclosure</header> <text display-inline="no-display-inline">In any class action, class counsel shall promptly disclose in writing to the court and all other parties the identity of any person or entity, other than a class member or class counsel of record, who has a contingent right to receive compensation from any settlement, judgment, or other relief obtained in the action.</text> </section> <section id="H8F6770AF0FC64E858F3146E7D0E80423" commented="no"> <enum>1723.</enum> <header>Appeals</header> <text display-inline="no-display-inline">A court of appeals shall permit an appeal from an order granting or denying class-action certification under Rule 23 of the Federal Rules of Civil Procedure.</text> </section> <after-quoted-block>.</after-quoted-block> </quoted-block> </subsection> <subsection id="H08B138FD0A0842FAB0F9B442FE7E4396"> <enum>(b)</enum> <header>Conforming amendment</header> <text>The table of sections for such chapter is amended by inserting after the item pertaining to section 1715 the following:</text> <quoted-block style="USC" id="H739D1CEBD2D3486BAB88798E9E2DFE5E" display-inline="no-display-inline"> <toc container-level="title-container" quoted-block="yes-quoted-block" lowest-level="section" idref="HA5E1D47346DF4C058D5B9EC573E97527" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"> <toc-quoted-entry style="USC"> <toc-entry idref="H87E9702C07A04387B2B294B17D5C78C2" level="section">Sec. 1716. Class action injury allegations.</toc-entry> <toc-entry idref="H85FE361C834E4CA086D80B82197F7298" level="section">Sec. 1717. Conflicts of interest.</toc-entry> <toc-entry idref="H46AF4DF3BF62411D87B0E8C5669C3EFA" level="section">Sec. 1718. Class member benefits.</toc-entry> <toc-entry idref="H13D1A35D9DF24462BC22822486F3BA55" level="section">Sec. 1719. Money distribution data.</toc-entry> <toc-entry idref="HE6FAC0D0F38544079B6E339832ABA54D" level="section">Sec. 1720. Issues classes.</toc-entry> <toc-entry idref="H507E71B27C2249E7807D63EF35D50C70" level="section">Sec. 1721. Stay of discovery.</toc-entry> <toc-entry idref="H2B9E73F691F84E5EB49A86D0B6AE697D" level="section">Sec. 1722. Third-party litigation funding disclosure.</toc-entry> <toc-entry idref="H8F6770AF0FC64E858F3146E7D0E80423" level="section">Sec. 1723. Appeals.</toc-entry> </toc-quoted-entry> </toc> <after-quoted-block>.</after-quoted-block> </quoted-block> </subsection> </section> <section id="H8465274546554426B974582C56D79CC9"> <enum>104.</enum> <header>Misjoinder of plaintiffs in personal injury and wrongful death actions</header> <text display-inline="no-display-inline"> Section 1447 is amended—</text> <paragraph id="HE48DCA202FAA4008A1C5698FFFA5E245"> <enum>(1)</enum> <text>by redesignating subsection (d) as subsection (e);</text> </paragraph> <paragraph id="H8BC799221C7347C4A1EE3BF92BF7AF80"> <enum>(2)</enum> <text>by redesignating subsection (e) as subsection (f); and</text> </paragraph> <paragraph id="H702E1BC2CA0142F989AE8843EE5BD597"> <enum>(3)</enum> <text>by inserting after subsection (c) the following:</text> <quoted-block id="H388B0244934948E9BE310FF5371DA668" style="USC"> <subsection id="HCECF7ACFD8214C3C9B5ED24844B13D2F"> <enum>(d)</enum> <header>Misjoinder of plaintiffs in personal injury and wrongful death actions</header> <paragraph id="HCB368703BB684160AA92C7BAF231088F"> <enum>(1)</enum> <text display-inline="yes-display-inline">This subsection shall apply to any civil action in which—</text> <subparagraph id="H0B6E0EBA3EB7450FBCDB064935A5FBA3"> <enum>(A)</enum> <text>two or more plaintiffs assert personal injury or wrongful death claims;</text> </subparagraph> <subparagraph id="H3D5CFA2CC01D4267957E343F66720137"> <enum>(B)</enum> <text>the action is removed on the basis of the jurisdiction conferred by section 1332(a); and</text> </subparagraph> <subparagraph id="H3A323834C58F44A7ACA2489464E3B46C"> <enum>(C)</enum> <text>a motion to remand is made on the ground that one or more defendants are citizens of the same State as one or more plaintiffs.</text> </subparagraph> </paragraph> <paragraph id="H19761EA4ECD64853A76909E0AAC23206"> <enum>(2)</enum> <text>In deciding the remand motion in any such case, the court shall apply the jurisdictional requirements of section 1332(a) to the claims of each plaintiff individually, as though that plaintiff were the sole plaintiff in the action.</text> </paragraph> <paragraph id="HBA243B9C23AF45AF9DE254E3A375F7B8"> <enum>(3)</enum> <text>The court shall sever the claims that do not satisfy the jurisdictional requirements of section 1332(a) and shall remand those claims to the State court from which the action was removed. The court shall retain jurisdiction over the claims that satisfy the jurisdictional requirements of section 1332(a).</text> </paragraph> </subsection> <after-quoted-block>.</after-quoted-block> </quoted-block> </paragraph> </section> <section id="H0CF24002F0364B5DB418B81DD3188923"> <enum>105.</enum> <header>Multidistrict litigation proceedings procedures</header> <text display-inline="no-display-inline">Section 1407 is amended by adding at the end the following:</text> <quoted-block id="HB8ECEFD0B9F64ADA88B26728F020C5EE" style="USC"> <subsection id="H4015FD5E7CBF422F8E4CE7327F4E76EB"> <enum>(i)</enum> <header>Allegations verification</header> <text display-inline="yes-display-inline">In any coordinated or consolidated pretrial proceedings conducted pursuant to subsection (b), counsel for a plaintiff asserting a claim seeking redress for personal injury whose civil action is assigned to or directly filed in the proceedings shall make a submission sufficient to demonstrate that there is evidentiary support (including but not limited to medical records) for the factual contentions in plaintiff’s complaint regarding the alleged injury, the exposure to the risk that allegedly caused the injury, and the alleged cause of the injury. The submission must be made within the first 45 days after the civil action is transferred to or directly filed in the proceedings. That deadline shall not be extended. Within 30 days after the submission deadline, the judge or judges to whom the action is assigned shall enter an order determining whether the submission is sufficient and shall dismiss the action without prejudice if the submission is found to be insufficient. If a plaintiff in an action dismissed without prejudice fails to tender a sufficient submission within the following 30 days, the action shall be dismissed with prejudice.</text> </subsection> <subsection id="H44D629C2F8FE4B0D99D07C538A792A8D"> <enum>(j)</enum> <header>Trial prohibition</header> <text>In any coordinated or consolidated pretrial proceedings conducted pursuant to subsection (b), the judge or judges to whom actions are assigned by the Judicial Panel on Multidistrict Litigation may not conduct any trial in any civil action transferred to or directly filed in the proceedings unless all parties to the civil action consent to trial of the specific case sought to be tried.</text> </subsection> <subsection id="HFA08A0ED4BAD4CF290F9FE329DDA9B53"> <enum>(k)</enum> <header>Review of orders</header> <paragraph id="HDA45A572B39442B8B692C69537641A3B"> <enum>(1)</enum> <header>In general</header> <text>The Court of Appeals having jurisdiction over the transferee district shall permit an appeal to be taken from any order issued in the conduct of coordinated or consolidated pretrial proceedings conducted pursuant to subsection (b), provided that an immediate appeal from the order may materially advance the ultimate termination of one or more civil actions in the proceedings.</text> </paragraph> <paragraph id="H849F7D6B7453480E84E9708445A45D50"> <enum>(2)</enum> <header>Remand orders</header> <text>Notwithstanding section 1447(e), a court of appeals may accept an appeal from an order issued in any coordinated or consolidated proceedings conducted pursuant to subsection (b) granting or denying a motion to remand a civil action to the State court from which it was removed if application is made to the court of appeals within 14 days after the order is entered.</text> </paragraph> </subsection> <subsection id="H802FA50D2A5D4585A110DF2F4B38E1FE"> <enum>(l)</enum> <header>Ensuring proper recovery for plaintiffs</header> <text>The claimants in any civil action asserting a claim for personal injury transferred to or directly filed in coordinated or consolidated pretrial proceedings conducted pursuant to subsection (b) shall receive not less than 80 percent of any monetary recovery obtained in that action by settlement, judgment or otherwise. The judge or judges to whom the coordinated or consolidated pretrial proceedings have been assigned shall have jurisdiction over any disputes regarding compliance with this requirement.</text> </subsection> <after-quoted-block>.</after-quoted-block> </quoted-block> </section> <section id="HAEF083676E3F4636970A883F477526F0"> <enum>106.</enum> <header>Rulemaking authority of Supreme Court and Judicial Conference</header> <text display-inline="no-display-inline"> Nothing in this title shall restrict in any way the authority of the Judicial Conference and the Supreme Court to propose and prescribe general rules of practice and procedure under chapter 131 of title 28, United States Code.</text> </section> <section id="HEB70C1ABBDF244C58950597DA0DC7871"> <enum>107.</enum> <header>Effective date</header> <text display-inline="no-display-inline"> The amendments made by the title shall apply to any civil action pending on the date of enactment of this title or commenced thereafter.</text> </section>

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[Discussion Draft]

March 1, 2017

115th CONGRESS 1st Session

Rules Committee Print 115–5

Text of H.R. 985, Fairness in Class Action Litigation and Furthering Asbestos Claim Transparency Act of 2017

Offered by M_. ______

[Showing the text of H.R. 985 as ordered reported and H.R. 906 as reported by the Committee on the Judiciary; with conforming changes.]

Short title; table of contents

(a)

Short title

This Act may be cited as the

Fairness in Class Action Litigation and Furthering Asbestos Claim Transparency Act of 2017

. (b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Title I—Fairness in Class Action Litigation

Sec. 101. Short title; reference; table of contents.

Sec. 102. Purposes.

Sec. 103. Class action procedures.

Sec. 104. Misjoinder of plaintiffs in personal injury and wrongful death actions.

Sec. 105. Multidistrict litigation proceedings procedures.

Sec. 106. Rulemaking authority of Supreme Court and Judicial Conference.

Sec. 107. Effective date.

Title II—Furthering Asbestos Claim Transparency

Sec. 201. Short title.

Sec. 202. Amendments.

Sec. 203. Effective date; application of amendments.

<enum>I</enum> <header>Fairness in Class Action Litigation</header> <section id="H483B58FAC75C4D6698BC06AFF6979643" section-type="subsequent-section"> <enum>101.</enum> <header>Short title; reference; table of contents</header> <subsection id="H1AB8BA5445974324B3B70148427F6504"> <enum>(a)</enum> <header>Short title</header> <text>This title may be cited as the <quote><short-title>Fairness in Class Action Litigation Act of 2017</short-title></quote>.</text> </subsection> <subsection id="H737ABD041A924549B127A939ED44C8BB"> <enum>(b)</enum> <header>Reference</header> <text>Whenever, in this title, reference is made to an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 28, United States Code.</text> </subsection> <subsection id="H4175FEB455F142368DE230B6CC8F7722"> <enum>(c)</enum> <header>Table of contents</header> <text>The table of contents of this title is as follows:</text> <toc container-level="title-container" quoted-block="no-quoted-block" lowest-level="section" idref="HA5E1D47346DF4C058D5B9EC573E97527" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"> <toc-entry idref="H483B58FAC75C4D6698BC06AFF6979643" level="section">Sec. 101. Short title; reference; table of contents.</toc-entry> <toc-entry idref="HD7E71BA9CBD64122B3AB90B8A09130E2" level="section">Sec. 102. Purposes.</toc-entry> <toc-entry idref="HCB2E33C4394541CDB8D4A8CEE6523715" level="section">Sec. 103. Class action procedures.</toc-entry> <toc-entry idref="H8465274546554426B974582C56D79CC9" level="section">Sec. 104. Misjoinder of plaintiffs in personal injury and wrongful death actions.</toc-entry> <toc-entry idref="H0CF24002F0364B5DB418B81DD3188923" level="section">Sec. 105. Multidistrict litigation proceedings procedures.</toc-entry> <toc-entry idref="HAEF083676E3F4636970A883F477526F0" level="section">Sec. 106. Rulemaking authority of Supreme Court and Judicial Conference.</toc-entry> <toc-entry idref="HEB70C1ABBDF244C58950597DA0DC7871" level="section">Sec. 107. Effective date.</toc-entry> </toc> </subsection> </section> <section id="HD7E71BA9CBD64122B3AB90B8A09130E2"> <enum>102.</enum> <header>Purposes</header> <text display-inline="no-display-inline"> The purposes of this title are to—</text> <paragraph id="H6DAD1718F6FE4976877805116F53E6CB"> <enum>(1)</enum> <text>assure fair and prompt recoveries for class members and multidistrict litigation plaintiffs with legitimate claims;</text> </paragraph> <paragraph id="HF6BE45A2A2CC46D79DF5F2842C477A41"> <enum>(2)</enum> <text>diminish abuses in class action and mass tort litigation that are undermining the integrity of the U.S. legal system; and</text> </paragraph> <paragraph id="HE52EDADE170142578A6F6C36CB52F4B6"> <enum>(3)</enum> <text>restore the intent of the framers of the United States Constitution by ensuring Federal court consideration of interstate controversies of national importance consistent with diversity jurisdiction principles.</text> </paragraph> </section> <section id="HCB2E33C4394541CDB8D4A8CEE6523715"> <enum>103.</enum> <header>Class action procedures</header> <subsection id="HBDFCCB591D594D2A9649632B5AC308AA"> <enum>(a)</enum> <header>In general</header> <text>Chapter 114 is amended by inserting after section 1715 the following:</text> <quoted-block id="HC97335340EE24664AD90BF819E794A14" style="USC"> <section id="H87E9702C07A04387B2B294B17D5C78C2"> <enum>1716.</enum> <header>Class action injury allegations</header> <subsection id="H7910A2C999DA46AB999AD0C296B62082"> <enum>(a)</enum> <header>In general</header> <text>A Federal court shall not issue an order granting certification of a class action seeking monetary relief for personal injury or economic loss unless the party seeking to maintain such a class action affirmatively demonstrates that each proposed class member suffered the same type and scope of injury as the named class representative or representatives.</text> </subsection> <subsection id="H34A7AD688A404A1AA729AD57ACC11E8A"> <enum>(b)</enum> <header>Certification order</header> <text>An order issued under Rule 23(c)(1) of the Federal Rules of Civil Procedure that certifies a class seeking monetary relief for personal injury or economic loss shall include a determination, based on a rigorous analysis of the evidence presented, that the requirement in subsection (a) of this section is satisfied.</text> </subsection> </section> <section id="H85FE361C834E4CA086D80B82197F7298"> <enum>1717.</enum> <header>Conflicts of interest</header> <subsection id="H36C167AA391B4CD19B733D30631A0BED"> <enum>(a)</enum> <header>Required disclosures</header> <text>In a class action complaint, class counsel shall state whether any proposed class representative or named plaintiff in the complaint is a relative of, is a present or former employee of, is a present or former client of (other than with respect to the class action), or has any contractual relationship with (other than with respect to the class action) class counsel. In addition, the complaint shall describe the circumstances under which each class representative or named plaintiff agreed to be included in the complaint and shall identify any other class action in which any proposed class representative or named plaintiff has a similar role.</text> </subsection> <subsection id="H760F139028B3462D8CCC70DE930B0D18"> <enum>(b)</enum> <header>Prohibition of conflicts</header> <text>A Federal court shall not issue an order granting certification of any class action in which any proposed class representative or named plaintiff is a relative of, is a present or former employee of, is a present or former client of (other than with respect to the class action), or has any contractual relationship with (other than with respect to the class action) class counsel.</text> </subsection> <subsection id="H4D8C152E40864CEA82B696F5726365B9"> <enum>(c)</enum> <header>Definition</header> <text>For purposes of this section, <quote>relative</quote> shall be defined by reference to section 3110(a)(3) of title 5, United States Code.</text> </subsection> </section> <section id="H46AF4DF3BF62411D87B0E8C5669C3EFA"> <enum>1718.</enum> <header>Class member benefits</header> <subsection id="HFA299119A8EA46E689602D8C1D8EAEB8"> <enum>(a)</enum> <header>Distribution of benefits to class members</header> <text>A Federal court shall not issue an order granting certification of a class action seeking monetary relief unless the class is defined with reference to objective criteria and the party seeking to maintain such a class action affirmatively demonstrates that there is a reliable and administratively feasible mechanism (a) for the court to determine whether putative class members fall within the class definition and (b) for distributing directly to a substantial majority of class members any monetary relief secured for the class.</text> </subsection> <subsection id="H54A69DA9C24844DDB229F0EC81B678FE"> <enum>(b)</enum> <header>Attorneys’ fees in class actions</header> <paragraph id="H08AB3E333CA0493AB0FC10DCBD5D6784"> <enum>(1)</enum> <header>Fee distribution timing</header> <text>In a class action seeking monetary relief, no attorneys’ fees may be determined or paid pursuant to Rule 23(h) of the Federal Rules of Civil Procedure or otherwise until the distribution of any monetary recovery to class members has been completed.</text> </paragraph> <paragraph id="HE9654F0A3DAB4DBB8F75E3656610FA54"> <enum>(2)</enum> <header>Fee determinations based on monetary awards</header> <text>Unless otherwise specified by Federal statute, if a judgment or proposed settlement in a class action provides for a monetary recovery, the portion of any attorneys’ fee award to class counsel that is attributed to the monetary recovery shall be limited to a reasonable percentage of any payments directly distributed to and received by class members. In no event shall the attorneys’ fee award exceed the total amount of money directly distributed to and received by all class members.</text> </paragraph> <paragraph id="H38686E59174D4DFFBC54F3093084461F"> <enum>(3)</enum> <header>Fee determinations based on equitable relief</header> <text>Unless otherwise specified by Federal statute, if a judgment or proposed settlement in a class action provides for equitable relief, the portion of any attorneys’ fee award to class counsel that is attributed to the equitable relief shall be limited to a reasonable percentage of the value of the equitable relief, including any injunctive relief.</text> </paragraph> </subsection> </section> <section id="H13D1A35D9DF24462BC22822486F3BA55"> <enum>1719.</enum> <header>Money distribution data</header> <subsection id="H7B08CC15DCF94EA6A30FEF25E3CA10E4"> <enum>(a)</enum> <header>Settlement accountings</header> <text>In any settlement of a class action that provides for monetary benefits, the court shall order class counsel to submit to the Director of the Federal Judicial Center and the Director of the Administrative Office of the United States Courts an accounting of the disbursement of all funds paid by the defendant pursuant to the settlement agreement. The accounting shall state the total amount paid directly to all class members, the actual or estimated total number of class members, the number of class members who received payments, the average amount (both mean and median) paid directly to all class members, the largest amount paid to any class member, the smallest amount paid to any class member and, separately, each amount paid to any other person (including class counsel) and the purpose of the payment. In stating the amounts paid to class members, no individual class member shall be identified. No attorneys’ fees may be paid to class counsel pursuant to Rule 23(h) of the Federal Rules of Civil Procedure until the accounting has been submitted.</text> </subsection> <subsection id="H3181092C31AC4FBBA37D299D18B46F43"> <enum>(b)</enum> <header>Annual settlement distribution reports</header> <text>Commencing not later than 12 months after the date of enactment of this section, the Judicial Conference of the United States, with the assistance of the Director of the Federal Judicial Center and the Director of the Administrative Office of the United States Courts, shall annually prepare and transmit to the Committees on the Judiciary of the Senate and the House of Representatives for public dissemination a report summarizing how funds paid by defendants in class actions have been distributed, based on the settlement accountings submitted pursuant to subsection (a).</text> </subsection> </section> <section id="HE6FAC0D0F38544079B6E339832ABA54D"> <enum>1720.</enum> <header>Issues classes</header> <subsection id="H8D6BF34BE7E44D98BDBB9BEC30001168"> <enum>(a)</enum> <header>In general</header> <text>A Federal court shall not issue an order granting certification of a class action with respect to particular issues pursuant to Rule 23(c)(4) of the Federal Rules of Civil Procedure unless the entirety of the cause of action from which the particular issues arise satisfies all the class certification prerequisites of Rule 23(a) and Rule 23(b)(1), Rule 23(b)(2), or Rule 23(b)(3).</text> </subsection> <subsection id="HC800F8D622534C95986689AE5CFF5D95"> <enum>(b)</enum> <header>Certification order</header> <text>An order issued under Rule 23(c)(4) of the Federal Rules of Civil Procedure that certifies a class with respect to particular issues shall include a determination, based on a rigorous analysis of the evidence presented, that the requirement in subsection (a) of this section is satisfied.</text> </subsection> </section> <section id="H507E71B27C2249E7807D63EF35D50C70"> <enum>1721.</enum> <header>Stay of discovery</header> <text display-inline="no-display-inline">In any class action, all discovery and other proceedings shall be stayed during the pendency of any motion to transfer, motion to dismiss, motion to strike class allegations, or other motion to dispose of the class allegations, unless the court finds upon the motion of any party that particularized discovery is necessary to preserve evidence or to prevent undue prejudice to that party.</text> </section> <section id="H2B9E73F691F84E5EB49A86D0B6AE697D"> <enum>1722.</enum> <header>Third-party litigation funding disclosure</header> <text display-inline="no-display-inline">In any class action, class counsel shall promptly disclose in writing to the court and all other parties the identity of any person or entity, other than a class member or class counsel of record, who has a contingent right to receive compensation from any settlement, judgment, or other relief obtained in the action.</text> </section> <section id="H8F6770AF0FC64E858F3146E7D0E80423" commented="no"> <enum>1723.</enum> <header>Appeals</header> <text display-inline="no-display-inline">A court of appeals shall permit an appeal from an order granting or denying class-action certification under Rule 23 of the Federal Rules of Civil Procedure.</text> </section> <after-quoted-block>.</after-quoted-block> </quoted-block> </subsection> <subsection id="H08B138FD0A0842FAB0F9B442FE7E4396"> <enum>(b)</enum> <header>Conforming amendment</header> <text>The table of sections for such chapter is amended by inserting after the item pertaining to section 1715 the following:</text> <quoted-block style="USC" id="H739D1CEBD2D3486BAB88798E9E2DFE5E" display-inline="no-display-inline"> <toc container-level="title-container" quoted-block="yes-quoted-block" lowest-level="section" idref="HA5E1D47346DF4C058D5B9EC573E97527" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"> <toc-quoted-entry style="USC"> <toc-entry idref="H87E9702C07A04387B2B294B17D5C78C2" level="section">Sec. 1716. Class action injury allegations.</toc-entry> <toc-entry idref="H85FE361C834E4CA086D80B82197F7298" level="section">Sec. 1717. Conflicts of interest.</toc-entry> <toc-entry idref="H46AF4DF3BF62411D87B0E8C5669C3EFA" level="section">Sec. 1718. Class member benefits.</toc-entry> <toc-entry idref="H13D1A35D9DF24462BC22822486F3BA55" level="section">Sec. 1719. Money distribution data.</toc-entry> <toc-entry idref="HE6FAC0D0F38544079B6E339832ABA54D" level="section">Sec. 1720. Issues classes.</toc-entry> <toc-entry idref="H507E71B27C2249E7807D63EF35D50C70" level="section">Sec. 1721. Stay of discovery.</toc-entry> <toc-entry idref="H2B9E73F691F84E5EB49A86D0B6AE697D" level="section">Sec. 1722. Third-party litigation funding disclosure.</toc-entry> <toc-entry idref="H8F6770AF0FC64E858F3146E7D0E80423" level="section">Sec. 1723. Appeals.</toc-entry> </toc-quoted-entry> </toc> <after-quoted-block>.</after-quoted-block> </quoted-block> </subsection> </section> <section id="H8465274546554426B974582C56D79CC9"> <enum>104.</enum> <header>Misjoinder of plaintiffs in personal injury and wrongful death actions</header> <text display-inline="no-display-inline"> Section 1447 is amended—</text> <paragraph id="HE48DCA202FAA4008A1C5698FFFA5E245"> <enum>(1)</enum> <text>by redesignating subsection (d) as subsection (e);</text> </paragraph> <paragraph id="H8BC799221C7347C4A1EE3BF92BF7AF80"> <enum>(2)</enum> <text>by redesignating subsection (e) as subsection (f); and</text> </paragraph> <paragraph id="H702E1BC2CA0142F989AE8843EE5BD597"> <enum>(3)</enum> <text>by inserting after subsection (c) the following:</text> <quoted-block id="H388B0244934948E9BE310FF5371DA668" style="USC"> <subsection id="HCECF7ACFD8214C3C9B5ED24844B13D2F"> <enum>(d)</enum> <header>Misjoinder of plaintiffs in personal injury and wrongful death actions</header> <paragraph id="HCB368703BB684160AA92C7BAF231088F"> <enum>(1)</enum> <text display-inline="yes-display-inline">This subsection shall apply to any civil action in which—</text> <subparagraph id="H0B6E0EBA3EB7450FBCDB064935A5FBA3"> <enum>(A)</enum> <text>two or more plaintiffs assert personal injury or wrongful death claims;</text> </subparagraph> <subparagraph id="H3D5CFA2CC01D4267957E343F66720137"> <enum>(B)</enum> <text>the action is removed on the basis of the jurisdiction conferred by section 1332(a); and</text> </subparagraph> <subparagraph id="H3A323834C58F44A7ACA2489464E3B46C"> <enum>(C)</enum> <text>a motion to remand is made on the ground that one or more defendants are citizens of the same State as one or more plaintiffs.</text> </subparagraph> </paragraph> <paragraph id="H19761EA4ECD64853A76909E0AAC23206"> <enum>(2)</enum> <text>In deciding the remand motion in any such case, the court shall apply the jurisdictional requirements of section 1332(a) to the claims of each plaintiff individually, as though that plaintiff were the sole plaintiff in the action.</text> </paragraph> <paragraph id="HBA243B9C23AF45AF9DE254E3A375F7B8"> <enum>(3)</enum> <text>The court shall sever the claims that do not satisfy the jurisdictional requirements of section 1332(a) and shall remand those claims to the State court from which the action was removed. The court shall retain jurisdiction over the claims that satisfy the jurisdictional requirements of section 1332(a).</text> </paragraph> </subsection> <after-quoted-block>.</after-quoted-block> </quoted-block> </paragraph> </section> <section id="H0CF24002F0364B5DB418B81DD3188923"> <enum>105.</enum> <header>Multidistrict litigation proceedings procedures</header> <text display-inline="no-display-inline">Section 1407 is amended by adding at the end the following:</text> <quoted-block id="HB8ECEFD0B9F64ADA88B26728F020C5EE" style="USC"> <subsection id="H4015FD5E7CBF422F8E4CE7327F4E76EB"> <enum>(i)</enum> <header>Allegations verification</header> <text display-inline="yes-display-inline">In any coordinated or consolidated pretrial proceedings conducted pursuant to subsection (b), counsel for a plaintiff asserting a claim seeking redress for personal injury whose civil action is assigned to or directly filed in the proceedings shall make a submission sufficient to demonstrate that there is evidentiary support (including but not limited to medical records) for the factual contentions in plaintiff’s complaint regarding the alleged injury, the exposure to the risk that allegedly caused the injury, and the alleged cause of the injury. The submission must be made within the first 45 days after the civil action is transferred to or directly filed in the proceedings. That deadline shall not be extended. Within 30 days after the submission deadline, the judge or judges to whom the action is assigned shall enter an order determining whether the submission is sufficient and shall dismiss the action without prejudice if the submission is found to be insufficient. If a plaintiff in an action dismissed without prejudice fails to tender a sufficient submission within the following 30 days, the action shall be dismissed with prejudice.</text> </subsection> <subsection id="H44D629C2F8FE4B0D99D07C538A792A8D"> <enum>(j)</enum> <header>Trial prohibition</header> <text>In any coordinated or consolidated pretrial proceedings conducted pursuant to subsection (b), the judge or judges to whom actions are assigned by the Judicial Panel on Multidistrict Litigation may not conduct any trial in any civil action transferred to or directly filed in the proceedings unless all parties to the civil action consent to trial of the specific case sought to be tried.</text> </subsection> <subsection id="HFA08A0ED4BAD4CF290F9FE329DDA9B53"> <enum>(k)</enum> <header>Review of orders</header> <paragraph id="HDA45A572B39442B8B692C69537641A3B"> <enum>(1)</enum> <header>In general</header> <text>The Court of Appeals having jurisdiction over the transferee district shall permit an appeal to be taken from any order issued in the conduct of coordinated or consolidated pretrial proceedings conducted pursuant to subsection (b), provided that an immediate appeal from the order may materially advance the ultimate termination of one or more civil actions in the proceedings.</text> </paragraph> <paragraph id="H849F7D6B7453480E84E9708445A45D50"> <enum>(2)</enum> <header>Remand orders</header> <text>Notwithstanding section 1447(e), a court of appeals may accept an appeal from an order issued in any coordinated or consolidated proceedings conducted pursuant to subsection (b) granting or denying a motion to remand a civil action to the State court from which it was removed if application is made to the court of appeals within 14 days after the order is entered.</text> </paragraph> </subsection> <subsection id="H802FA50D2A5D4585A110DF2F4B38E1FE"> <enum>(l)</enum> <header>Ensuring proper recovery for plaintiffs</header> <text>The claimants in any civil action asserting a claim for personal injury transferred to or directly filed in coordinated or consolidated pretrial proceedings conducted pursuant to subsection (b) shall receive not less than 80 percent of any monetary recovery obtained in that action by settlement, judgment or otherwise. The judge or judges to whom the coordinated or consolidated pretrial proceedings have been assigned shall have jurisdiction over any disputes regarding compliance with this requirement.</text> </subsection> <after-quoted-block>.</after-quoted-block> </quoted-block> </section> <section id="HAEF083676E3F4636970A883F477526F0"> <enum>106.</enum> <header>Rulemaking authority of Supreme Court and Judicial Conference</header> <text display-inline="no-display-inline"> Nothing in this title shall restrict in any way the authority of the Judicial Conference and the Supreme Court to propose and prescribe general rules of practice and procedure under chapter 131 of title 28, United States Code.</text> </section> <section id="HEB70C1ABBDF244C58950597DA0DC7871"> <enum>107.</enum> <header>Effective date</header> <text display-inline="no-display-inline"> The amendments made by the title shall apply to any civil action pending on the date of enactment of this title or commenced thereafter.</text> </section> <enum>II</enum> <header>Furthering Asbestos Claim Transparency</header> <section id="H7EFD49523D22423687E0340971A8D599" section-type="subsequent-section"> <enum>201.</enum> <header>Short title</header> <text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Furthering Asbestos Claim Transparency (FACT) Act of 2017</short-title></quote>.</text> </section> <section id="H7C7246A7D4A149C3AC1C904290B90887"> <enum>202.</enum> <header>Amendments</header> <text display-inline="no-display-inline">Section 524(g) of title 11, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H162DA5CBBB504251A55BF003A5BD57C3" style="traditional"> <paragraph id="H1242707ECFEC42C69EDA360366BDDFAC" indent="up1"> <enum>(8)</enum> <text display-inline="yes-display-inline">A trust described in paragraph (2) shall, subject to section 107—</text> <subparagraph id="H741F987606D14ADC9DE18ECE9FC3A057"> <enum>(A)</enum> <text>file with the bankruptcy court, not later than 60 days after the end of every quarter, a report that shall be made available on the court’s public docket and with respect to such quarter—</text> <clause id="HD8142EF7A05C4699A5BEE8F4C51CCA79"> <enum>(i)</enum> <text display-inline="yes-display-inline">describes each demand the trust received from, including the name and exposure history of, a claimant and the basis for any payment from the trust made to such claimant; and</text> </clause> <clause id="HC54341A99BEC45719759B38386855C71"> <enum>(ii)</enum> <text display-inline="yes-display-inline">does not include any confidential medical record or the claimant’s full social security number; and</text> </clause> </subparagraph> <subparagraph id="HF5E5FFD4BA134ACCA87989C41A7674FA"> <enum>(B)</enum> <text display-inline="yes-display-inline">upon written request, and subject to payment (demanded at the option of the trust) for any reasonable cost incurred by the trust to comply with such request, provide in a timely manner any information related to payment from, and demands for payment from, such trust, subject to appropriate protective orders, to any party to any action in law or equity if the subject of such action concerns liability for asbestos exposure.</text> </subparagraph> </paragraph> <after-quoted-block>.</after-quoted-block> </quoted-block> </section> <section id="H1B87DD9B78EC47A1856D33A7CAD854A4"> <enum>203.</enum> <header>Effective date; application of amendments</header> <subsection id="H83BD97552755475890FA960E3F9286EF"> <enum>(a)</enum> <header>Effective date</header> <text>Except as provided in subsection (b), this title and the amendments made by this title shall take effect on the date of the enactment of this title.</text> </subsection> <subsection id="HAD6FB72340F5480EB3F6DF6F8419485A"> <enum>(b)</enum> <header>Application of amendments</header> <text>The amendments made by this title shall apply with respect to cases commenced under title 11 of the United States Code before, on, or after the date of the enactment of this title.</text> </subsection> </section>