H.R. 985House115th Congress (2017-2019)Passed House

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

Introduced February 9, 2017

AI-Generated Summary

Updated April 15, 2026 at 12:43 PM UTC

The bill changes federal rules for class actions and multidistrict litigation to make outcomes fairer for plaintiffs and defendants, and adds reporting requirements for asbestos bankruptcy trusts. It requires stricter proof that class members share the same injury, forces disclosure of conflicts of interest, limits attorney fees until class members are paid, and adds data‑reporting and appeal rights. It also tightens rules for removing cases with multiple plaintiffs and sets new filing and recovery standards in MDL cases. The changes affect federal courts, class‑action plaintiffs and counsel, multidistrict litigants, and asbestos‑trust administrators.

Key Provisions

  • Class actions seeking monetary relief for personal injury or economic loss must show that each proposed class member suffered the same type and scope of injury as the representative(s).
  • Class counsel must disclose any familial, employment, or contractual relationships with class representatives; courts cannot certify a class if such conflicts exist (except certain securities cases).
  • Class definitions must use objective criteria and include a feasible method to identify members and distribute money; attorney fees are payable only after distribution and are limited to a reasonable percentage of the amounts actually paid to class members.
  • Courts must require detailed settlement accounting of all funds paid to class members and file annual public reports summarizing how class‑action money is distributed.
  • Issue‑specific classes are prohibited unless the entire underlying case meets all Rule 23 certification requirements.
  • Discovery is stayed while motions to dismiss, transfer, or strike class allegations are pending, unless a party shows it is needed to preserve evidence.
  • Class counsel must disclose any third‑party litigation funders who have a contingent right to compensation.
  • Appeals of class‑certification orders are allowed.
  • When multiple plaintiffs are removed to federal court under diversity jurisdiction, each plaintiff’s citizenship is evaluated individually; non‑qualifying claims are severed and remanded unless closely related and the plaintiff consents.
  • In multidistrict litigation, plaintiffs must submit evidence supporting their injury within 45 days of transfer; insufficient submissions lead to dismissal, and trials require consent of all parties.
  • Appeals are permitted from certain MDL orders, and plaintiffs must receive at least 80 % of any monetary recovery, after liens for medical services are satisfied.
  • Asbestos bankruptcy trusts must file quarterly reports describing each demand and payment (excluding full SSNs and confidential medical records) and must provide requested information to parties in asbestos‑liability actions, subject to cost reimbursement.

Legislative Activity

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37 earlier actions
SenateIntro Referral Latest Action

Received in the Senate and Read twice and referred to the Committee on the Judiciary.

March 13, 2017

View full timeline
HouseIntro Referral

Introduced in House

February 9, 2017

HouseIntro Referral

Referred to the House Committee on the Judiciary.

February 9, 2017

HouseCommittee

Referred to the Subcommittee on the Constitution and Civil Justice.

February 10, 2017

HouseCommittee

Committee Consideration and Mark-up Session Held.

February 15, 2017

HouseCommittee

Ordered to be Reported by the Yeas and Nays: 19 - 12.

February 15, 2017

HouseCommittee

Reported by the Committee on Judiciary. H. Rept. 115-25.

March 7, 2017

HouseCalendars

Placed on the Union Calendar, Calendar No. 11.

March 7, 2017

HouseFloor

Considered under the provisions of rule H. Res. 180. (consideration: CR H1974-2000)

March 9, 2017 • 3:47 PM

HouseFloor

Providing for consideration of the bills H.R. 720 and H.R. 985.

March 9, 2017 • 3:47 PM

HouseFloor

House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 180 and Rule XVIII.

March 9, 2017 • 3:48 PM

HouseFloor

The Speaker designated the Honorable Michael K. Simpson to act as Chairman of the Committee.

March 9, 2017 • 3:48 PM

HouseFloor

GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 985.

March 9, 2017 • 3:48 PM

HouseFloor

DEBATE - Pursuant to the provisions of H.Res. 180, the Committee of the Whole proceeded with 10 minutes of debate on the Goodlatte amendment No. 1.

March 9, 2017 • 4:37 PM

HouseFloor

DEBATE - Pursuant to the provisions of H.Res. 180, the Committee of the Whole proceeded with 10 minutes of debate on the Deutch amendment No. 2.

March 9, 2017 • 4:45 PM

HouseFloor

POSTPONED PROCEEDINGS - At the conclusion of debate on the Deutch amendment No. 2, the Chair put the question on adoption of the amendment and by voice vote announced that the noes had prevailed. Mr. Deutch demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until a time to be announced.

March 9, 2017 • 4:52 PM

HouseFloor

DEBATE - Pursuant to the provisions of H.Res. 180, the Committee of the Whole proceeded with 10 minutes of debate on the Deutch amendment No. 3.

March 9, 2017 • 4:53 PM

HouseFloor

POSTPONED PROCEEDINGS - At the conclusion of debate on the Deutch amendment No. 3, the Chair put the question on adoption of the amendment and by voice vote announced that the noes had prevailed. Mr. Deutch demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until a time to be announced.

March 9, 2017 • 5:02 PM

HouseFloor

DEBATE - Pursuant to the provisions of H.Res. 180, the Committee of the Whole proceeded with 10 minutes of debate on the Soto amendment No. 4.

March 9, 2017 • 5:03 PM

HouseFloor

POSTPONED PROCEEDINGS - At the conclusion of debate on the Soto amendment, the Chair put the question on adoption of the amendment and by voice vote announced that the noes had prevailed. Mr. Soto demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until a time to be announced.

March 9, 2017 • 5:10 PM

HouseFloor

DEBATE - Pursuant to the provisions of H.Res. 180, the Committee of the Whole proceeded with 10 minutes of debate on the Johnson (GA) amendment No. 5.

March 9, 2017 • 5:11 PM

HouseFloor

POSTPONED PROCEEDINGS - At the conclusion of debate on the Johnson(GA) amendment, the Chair put the question on adoption of the amendment and by voice vote announced that the noes had prevailed. Mr. Johnson (GA) demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until a time to be announced.

March 9, 2017 • 5:21 PM

HouseFloor

DEBATE - Pursuant to the provisions of H.Res. 180, the Committee of the Whole proceeded with 10 minutes of debate on the Conyers amendment No. 6.

March 9, 2017 • 5:21 PM

HouseFloor

POSTPONED PROCEEDINGS - At the conclusion of debate on the Conyers amendment, the Chair put the question on adoption of the amendment and by voice vote announced that the noes had prevailed. Mr. Conyers demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until a time to be announced.

March 9, 2017 • 5:30 PM

HouseFloor

DEBATE - Pursuant to the provisions of H.Res. 180, the Committee of the Whole proceeded with 10 minutes of debate on the Jackson Lee amendment No. 7.

March 9, 2017 • 5:30 PM

HouseFloor

POSTPONED PROCEEDINGS - At the conclusion of debate on the Jackson Lee amendment, the Chair put the question on adoption of the amendment and by voice vote announced that the noes had prevailed. Ms. Jackson Lee demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until a time to be announced.

March 9, 2017 • 5:39 PM

HouseFloor

DEBATE - Pursuant to the provisions of H.Res. 180, the Committee of the Whole proceeded with 10 minutes of debate on the Espaillat amendment No. 8.

March 9, 2017 • 5:40 PM

HouseFloor

POSTPONED PROCEEDINGS - At the conclusion of debate on the Espaillat amendment, the Chair put the question on adoption of the amendment and by voice vote announced that the noes had prevailed. Mr. Espaillat demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until a time to be announced.

March 9, 2017 • 5:45 PM

HouseFloor

The House rose from the Committee of the Whole House on the state of the Union to report H.R. 985.

March 9, 2017 • 6:29 PM

HouseFloor

The previous question was ordered pursuant to the rule.

March 9, 2017 • 6:30 PM

HouseFloor

The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union. (consideration: CR H1981-1983)

March 9, 2017 • 6:30 PM

HouseFloor

Mr. Kildee moved to recommit with instructions to the Committee on the Judiciary. (text: CR H1998)

March 9, 2017 • 6:32 PM

HouseFloor

DEBATE - The House proceeded with 10 minutes of debate on the Kildee motion to recommit with instructions. The instructions contained in the motion seek to report the bill back to the House with an amendment to add an exemption for any civil action brought forward to protect drinking water supplies.

March 9, 2017 • 6:32 PM

HouseFloor

The previous question on the motion to recommit with instructions was ordered without objection.

March 9, 2017 • 6:40 PM

HouseFloor

On motion to recommit with instructions Failed by recorded vote: 188 - 234 (Roll no. 147).

March 9, 2017 • 6:47 PM

HouseFloor

Passed/agreed to in House: On passage Passed by recorded vote: 220 - 201, 1 Present (Roll no. 148).

March 9, 2017 • 6:53 PM

HouseFloor

On passage Passed by recorded vote: 220 - 201, 1 Present (Roll no. 148).

March 9, 2017 • 6:53 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

March 9, 2017 • 6:53 PM

SenateIntro Referral

Received in the Senate and Read twice and referred to the Committee on the Judiciary.

March 13, 2017

Amendments

8 amendments

Offered to this bill

H.Amdt. 75Mar 9, 2017

Amendment sought to exempt a claimant who is or has been living in public housing or any dwelling unit for which rental assistance provided under section 8.

On agreeing to the Espaillat amendment (A008) Failed by recorded vote: 193 - 228 (Roll no. 146). · Sponsored by Adriano Espaillat

H.Amdt. 74Mar 9, 2017

An amendment numbered 7 printed in Part B House Report 115-29 to replace the substantive text of the bill with a requirement that the bankruptcy asbestos trust report quarterly an aggregate list of demands received and payments made.

On agreeing to the Jackson Lee amendment (A007) Failed by recorded vote: 193 - 229 (Roll no. 145). · Sponsored by Sheila Jackson Lee

H.Amdt. 73Mar 9, 2017

Amendment sought to exempt civil rights actions from the bill's class action provisions.

On agreeing to the Conyers amendment (A006) Failed by recorded vote: 191 - 230 (Roll no. 144). · Sponsored by John Conyers, Jr.

H.Amdt. 72Mar 9, 2017

Amendment sought to exempt civil actions alleging fraud.

On agreeing to the Johnson (GA) amendment (A005) Failed by recorded vote: 190 - 230 (Roll no. 143). · Sponsored by Henry C. "Hank" Johnson, Jr.

H.Amdt. 71Mar 9, 2017

Amendment sought to strike section 1721 to allow discovery to proceed while motions are pending.

On agreeing to the Soto amendment (A004) Failed by recorded vote: 192 - 230 (Roll no. 142). · Sponsored by Darren Soto

H.Amdt. 70Mar 9, 2017

Amendment sought to strike the fee determination based on equitable relief provision.

On agreeing to the Deutch amendment (A003) Failed by recorded vote: 189 - 228 (Roll no. 141). · Sponsored by Theodore E. Deutch

H.Amdt. 69Mar 9, 2017

Amendment sought to strike the provision on conflicts of interest.

On agreeing to the Deutch amendment (A002) Failed by recorded vote: 182 - 227 (Roll no. 140). · Sponsored by Theodore E. Deutch

H.Amdt. 68Mar 9, 2017

An amendment numbered 1 printed in Part B of House Report 115-29 to make technical, conforming, and clarifying changes to the bill.

On agreeing to the Goodlatte amendment (A001) Agreed to by voice vote. · Sponsored by Bob Goodlatte

Floor Debate

23 members

What members said about H.R. 985 on the floor

7 Republicans16 Democrats
Bob Goodlatte
Rep. Bob GoodlatteR-VA-6 · Mar 9, 2017

Mr. Chairman, I have amendment at the desk. Mr. Chairman, the manager's amendment makes several technical changes to the bill, none of which alter its basic policy, but all of which add clarity to…

Sheila Jackson Lee
Rep. Sheila Jackson LeeD-TX-18 · Mar 9, 2017

Mr. Chair, I rise in strong opposition to Rules Committee Print 115-5 of H.R. 985, the Fairness in Class Action Litigation and Furthering Asbestos Claim Transparency Act of 2017, which is a radical…

Doug Collins
Rep. Doug CollinsR-GA-9 · Mar 9, 2017

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 180 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…

Blake Farenthold
Rep. Blake FarentholdR-TX-27 · Mar 9, 2017

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous materials to H.R. 985. I yield myself such time as…

John Conyers, Jr.
Rep. John Conyers, Jr.D-MI-13 · Mar 9, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I rise in support of my amendment, which would exempt H.R. 985's unnecessary and burdensome class action provisions all class actions…

Show 8 more
Jamie Raskin
Rep. Jamie RaskinD-MD-8 · Mar 9, 2017

I yield myself such time as I may consume. Mr. Chairman, I rise in strong opposition to H.R. 985, the so-called Fairness in Class Action Litigation and Furthering Asbestos Claims Transparency Act of…

Louise McIntosh Slaughter
Rep. Louise McIntosh SlaughterD-NY-25 · Mar 9, 2017

Mr. Speaker, I yield myself such time as I may consume. I thank my colleague and friend from Georgia for yielding time to me. Mr. Speaker, with this package of bills, the majority is taking a…

Henry C. "Hank" Johnson, Jr.

Mr. Chairman, I rise in opposition to H.R. 985, a monster of a bill, combining the anticonsumer Fairness in Class Action Litigation Act and the antivictim Furthering Asbestos Claim Transparency Act.…

Theodore E. Deutch
Rep. Theodore E. DeutchD-FL-22 · Mar 9, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, the right to choose one's own counsel is a basic right in our democracy. This is a right that is a foundation of a fair and impartial…

Adriano Espaillat
Rep. Adriano EspaillatD-NY-13 · Mar 9, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I rise in support of my amendment to H.R. 985, the Fairness in Class Action Litigation and Furthering Asbestos Claim Transparency Act of…

Daniel T. Kildee
Rep. Daniel T. KildeeD-MI-5 · Mar 9, 2017

Mr. Speaker, I have a motion to recommit at the desk. I am opposed. Mr. Speaker, this is the final amendment to the bill, which will not kill the bill or send it back to committee. If adopted, the…

Robert C. "Bobby" Scott
Rep. Robert C. "Bobby" ScottD-VA-3 · Mar 9, 2017

Mr. Chair, I thank the gentleman for yielding. I rise in opposition to H.R. 985. In addition to the legislation's many problems that have already been mentioned by my colleagues, I am particularly…

Jerrold Nadler
Rep. Jerrold NadlerD-NY-10 · Mar 9, 2017

Mr. Chairman, I thank the gentleman for yielding. Mr. Chairman, I rise in strong opposition to H.R. 985, the so-called Fairness in Class Action Litigation and Furthering Asbestos Claim Transparency…

Show 11 more
David N. Cicilline
Rep. David N. CicillineD-RI-1 · Mar 9, 2017

Mr. Chairman, I rise in opposition to H.R. 985, the Fairness in Class Action Litigation and Furthering Asbestos Claim Transparency Act of 2017. Mr. Chairman, there can be no doubt that this…

Darren Soto
Rep. Darren SotoD-FL-9 · Mar 9, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, my amendment would strike section 1721 of this Fairness in Class Action Litigation Act of 2017. The irony of section 1721 is it unfairly…

Lou Barletta
Rep. Lou BarlettaR-PA-11 · Mar 13, 2017

Mr. Speaker, on Thursday, March 9, and Friday, March 10, I was unable to be present for recorded votes. On March 9, had I been present, I would have voted the following on amendments to H.R. 985, the…

Betty McCollum
Rep. Betty McCollumD-MN-4 · Mar 9, 2017

Mr. Chair, asbestos is a deadly poison. It can cause lung cancer and mesothelioma. Once detected, these patients survive only, on average, 8 to 14 months. It was true for Congressman Bruce Vento, who…

Pete Sessions
Rep. Pete SessionsR-TX-32 · Mar 1, 2017

Mr. Speaker, this morning the Rules Committee issued announcements outlining the process for amendments for three measures likely to be on the floor next week. An amendment deadline has been set for…

John B. Larson
Rep. John B. LarsonD-CT-1 · Mar 9, 2017

Mr. Speaker, on Thursday, March 9th, 2017, I was not present for roll call votes 138 and 139. If I had been present for this vote, I would have voted: ``Nay'' on roll call vote 138, ``Nay'' on roll…

Roger Marshall
Rep. Roger MarshallR-KS-1 · Mar 1, 2017

Mr. Speaker, I was talking to constituents and reached a time when a very personal issue arose. Had I been present, I would have voted ``yea'' on rollcall No. 115 and ``yea'' on rollcall No. 116.

Lois Frankel
Rep. Lois FrankelD-FL-21 · Mar 9, 2017

Mr. Speaker, on roll call votes 138 and 139, I was not present because I was unavoidably detained. Had I been present, I would have voted ``Nay'' on both votes.

Ted S. Yoho
Rep. Ted S. YohoR-FL-3 · Mar 9, 2017

Mr. Speaker, had I been present, I would have voted ``Nay'' on rollcall No. 143, the Hank Johnson Amendment No. 5. Amendment No. 6 Offered by Mr. Conyers

Frederica S. Wilson
Rep. Frederica S. WilsonD-FL-24 · Mar 9, 2017

Mr. Speaker, I was unavoidably detained. Had I been present, I would have voted ``yea'' on rollcall No. 140.

Louise McIntosh Slaughter
Rep. Louise McIntosh SlaughterD-NY-25 · Mar 9, 2017

Mr. Speaker, on that I demand the yeas and nays.

Bill Text

4 versions available

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Referred in SenateIssued March 13, 2017

IIB

115th CONGRESS

1st Session

H. R. 985

IN THE SENATE OF THE UNITED STATES

March 13, 2017

Received; read twice and referred to the Committee on the Judiciary

AN ACT

To amend the procedures used in Federal court class actions and multidistrict litigation proceedings to assure fairer, more efficient outcomes for claimants and defendants, and for other purposes.

1.

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.

I

Fairness in Class Action Litigation

101.

Short title; reference; table of contents

(a)

Short title

This title may be cited as the Fairness in Class Action Litigation Act of 2017.

(b)

Reference

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.

(c)

Table of contents

The table of contents of this title is as follows:

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.

102.

Purposes

The purposes of this title are to—

(1)

assure fair and prompt recoveries for class members and multidistrict litigation plaintiffs with legitimate claims;

(2)

diminish abuses in class action and mass tort litigation that are undermining the integrity of the U.S. legal system; and

(3)

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.

103.

Class action procedures

(a)

In general

Chapter 114 is amended by inserting after section 1715 the following:

1716.

Class action injury allegations

(a)

In general

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.

(b)

Certification order

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.

1717.

Conflicts of interest

(a)

Required disclosures

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.

(b)

Prohibition of conflicts

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 or employee of class counsel.

(c)

Definition

For purposes of this section, relative shall be defined by reference to section 3110(a)(3) of title 5, United States Code.

(d)

Exception

This section shall not apply to a private action brought as a class action that is subject to section 27(a) of the Securities Act of 1933 (15 U.S.C. 77z–1(a)) or section 21D(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78u–4(a)).

1718.

Class member benefits

(a)

Distribution of benefits to class members

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.

(b)

Attorneys’ fees in class actions

(1)

Fee distribution timing

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.

(2)

Fee determinations based on monetary awards

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.

(3)

Fee determinations based on equitable relief

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.

1719.

Money distribution data

(a)

Settlement accountings

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.

(b)

Annual settlement distribution reports

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).

1720.

Issues classes

(a)

In general

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).

(b)

Certification order

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.

1721.

Stay of discovery

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. This section shall not apply to a private action brought as a class action that is subject to section 27(a) of the Securities Act of 1933 (15 U.S.C. 77z–1(a)) or section 21D(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78u–4(a)).

1722.

Third-party litigation funding disclosure

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.

1723.

Appeals

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.

.

(b)

Conforming amendment

The table of sections for such chapter is amended by inserting after the item pertaining to section 1715 the following:

.

104.

Misjoinder of plaintiffs in personal injury and wrongful death actions

Section 1447 is amended by inserting after subsection (e) the following:

(f)

Misjoinder of plaintiffs in personal injury and wrongful death actions

(1)

This subsection shall apply to any civil action commenced in a State court in which—

(A)

two or more plaintiffs assert personal injury or wrongful death claims;

(B)

the action is removed on the basis of the jurisdiction conferred by section 1332(a); and

(C)

a motion to remand is made on the ground that one or more plaintiffs are citizens of the same State as one or more defendants.

(2)

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.

(3)

Except as provided in paragraph (4), 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).

(4)

The court shall retain jurisdiction over a claim that does not satisfy the jurisdictional requirements of section 1332(a) if—

(A)

the claim is so related to the claims that satisfy the jurisdictional requirements of section 1332(a) that they form part of the same case or controversy under Article III of the United States Constitution; and

(B)

the plaintiff consents to the removal of the claim.

.

105.

Multidistrict litigation proceedings procedures

Section 1407 is amended by adding at the end the following:

(i)

Allegations verification

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 90 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.

(j)

Trial prohibition

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 a trial in a civil action transferred to or directly filed in the proceedings unless all parties to that civil action consent.

(k)

Review of orders

(1)

In general

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 the order is applicable to one or more civil actions seeking redress for personal injury and that an immediate appeal from the order may materially advance the ultimate termination of one or more civil actions in the proceedings.

(2)

Remand orders

Notwithstanding section 1447(d), 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.

(l)

Ensuring proper recovery for plaintiffs

A plaintiff who asserts personal injury claims in any civil action 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 for those claims by settlement, judgment, or otherwise, subject to the satisfaction of any liens for medical services provided to the plaintiff related to those claims. 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.

.

106.

Rulemaking authority of Supreme Court and Judicial Conference

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.

107.

Effective date

The amendments made by the title shall apply to any civil action pending on the date of enactment of this title or commenced thereafter.

II

Furthering Asbestos Claim Transparency

201.

Short title

This title may be cited as the Furthering Asbestos Claim Transparency (FACT) Act of 2017.

202.

Amendments

Section 524(g) of title 11, United States Code, is amended by adding at the end the following:

(8)

A trust described in paragraph (2) shall, subject to section 107—

(A)

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—

(i)

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

(ii)

does not include any confidential medical record or the claimant’s full social security number; and

(B)

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.

.

203.

Effective date; application of amendments

(a)

Effective date

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.

(b)

Application of amendments

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.

Passed the House of Representatives March 9, 2017.

Karen L. Haas,

Clerk