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News
February 3, 2016

U.S. Chamber Applauds House Judiciary Committee Passage of Bill to Keep Federal Lawsuits Out of State Courts

WASHINGTON, D.C. — Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform (ILR), made the following statement today about the U.S. House Judiciary Committee’s passage of the “Fraudulent Joinder Prevention Act of 2015” (H.R. 3624):

“Plaintiffs’ lawyers often rope in a local business or individual that is not the true target of a lawsuit as a defendant as a pretext to sue out-of-state parties in state courts where they have a significant home field advantage.

“This bill would keep legal claims in federal court that properly belong there by allowing federal judges to decide whether a local party is truly a legitimate defendant and not put there solely to keep the case in a trial lawyer-friendly state court.

“We commend the House Judiciary Committee for passing this important legislation and urge both the House and Senate to swiftly do the same.”

ILR seeks to promote civil justice reform through legislative, political, judicial, and educational activities at the national, state, and local levels.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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