28 U.S.C. § 1409 — Venue of proceedings arising under title

Page 393 TITLE 28—JUDICIARY AND JUDICIAL PROCEDURE § 1409 1 See Adjustment of Dollar Amounts notes below. the panel to set a hearing and other orders of the panel issued prior to the order either direct- ing or denying transfer shall be filed in the of- fice of the clerk of the district court in which a transfer hearing is to be or has been held. The panel’s order of transfer shall be based upon a record of such hearing at which material evi- dence may be offered by any party to an action pending in any district that would be affected by the proceedings under this section, and shall be supported by findings of fact and conclusions of law based upon such record. Orders of transfer and such other orders as the panel may make thereafter shall be filed in the office of the clerk of the district court of the transferee district and shall be effective when thus filed. The clerk of the transferee district court shall forthwith transmit a certified copy of the panel’s order to transfer to the clerk of the district court from which the action is being transferred. An order denying transfer shall be filed in each district wherein there is a case pending in which the mo- tion for transfer has been made. (d) The judicial panel on multidistrict litiga- tion shall consist of seven circuit and district judges designated from time to time by the Chief Justice of the United States, no two of whom shall be from the same circuit. The con- currence of four members shall be necessary to any action by the panel. (e) No proceedings for review of any order of the panel may be permitted except by extraor- dinary writ pursuant to the provisions of title 28, section 1651, United States Code. Petitions for an extraordinary writ to review an order of the panel to set a transfer hearing and other or- ders of the panel issued prior to the order either directing or denying transfer shall be filed only in the court of appeals having jurisdiction over the district in which a hearing is to be or has been held. Petitions for an extraordinary writ to review an order to transfer or orders subsequent to transfer shall be filed only in the court of ap- peals having jurisdiction over the transferee dis- trict. There shall be no appeal or review of an order of the panel denying a motion to transfer for consolidated or coordinated proceedings. (f) The panel may prescribe rules for the con- duct of its business not inconsistent with Acts of Congress and the Federal Rules of Civil Pro- cedure. (g) Nothing in this section shall apply to any action in which the United States or a State is a complainant arising under the antitrust laws. ‘‘Antitrust laws’’ as used herein include those acts referred to in the Act of October 15, 1914, as amended (38 Stat. 730; 15 U.S.C. 12), and also in- clude the Act of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13, 13a, and 13b) and the Act of September 26, 1914, as added March 21, 1938 (52 Stat. 116, 117; 15 U.S.C. 56). (Added Pub. L. 90–296, § 1, Apr. 29, 1968, 82 Stat. 109; amended Pub. L. 94–435, title III, § 303, Sept. 30, 1976, 90 Stat. 1396; Pub. L. 117–328, div. GG, title III, § 301, Dec. 29, 2022, 136 Stat. 5970.) Editorial Notes REFERENCES IN TEXT The Federal Rules of Civil Procedure, referred to in subsec. (f), are set out in the Appendix to this title. AMENDMENTS 2022—Subsec. (g). Pub. L. 117–328, § 301(1), inserted ‘‘or a State’’ after ‘‘United States’’ and struck out ‘‘; but shall not include section 4A of the Act of October 15, 1914, as added July 7, 1955 (69 Stat. 282; 15 U.S.C. 15a)’’ before period at end. Subsec. (h). Pub. L. 117–328, § 301(2), struck out subsec. (h) which read as follows: ‘‘Notwithstanding the provi- sions of section 1404 or subsection (f) of this section, the judicial panel on multidistrict litigation may con- solidate and transfer with or without the consent of the parties, for both pretrial purposes and for trial, any ac- tion brought under section 4C of the Clayton Act.’’ 1976—Pub. L. 94–435 added subsec. (h). § 1408. Venue of cases under title 11 Except as provided in section 1410 of this title, a case under title 11 may be commenced in the district court for the district— (1) in which the domicile, residence, prin- cipal place of business in the United States, or principal assets in the United States, of the person or entity that is the subject of such case have been located for the one hundred and eighty days immediately preceding such commencement, or for a longer portion of such one-hundred-and-eighty-day period than the domicile, residence, or principal place of busi- ness, in the United States, or principal assets in the United States, of such person were lo- cated in any other district; or (2) in which there is pending a case under title 11 concerning such person’s affiliate, gen- eral partner, or partnership. (Added Pub. L. 98–353, title I, § 102(a), July 10, 1984, 98 Stat. 334.) Editorial Notes PRIOR PROVISIONS A prior section 1408, added by Pub. L. 95–598, title II, § 240(a), Nov. 6, 1978, 92 Stat. 2668, which related to bankruptcy appeals, did not become effective pursuant to section 402(b) of Pub. L. 95–598, as amended, set out as an Effective Date note preceding section 101 of Title 11, Bankruptcy. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective July 10, 1984, see section 122(a) of Pub. L. 98–353, set out as a note under section 151 of this title. § 1409. Venue of proceedings arising under title 11 or arising in or related to cases under title 11 (a) Except as otherwise provided in sub- sections (b) and (d), a proceeding arising under title 11 or arising in or related to a case under title 11 may be commenced in the district court in which such case is pending. (b) Except as provided in subsection (d) of this section, a trustee in a case under title 11 may commence a proceeding arising in or related to such case to recover a money judgment of or property worth less than $1,000 1 or a consumer debt of less than $15,000,1 or a debt (excluding a consumer debt) against a noninsider of less than Page 394 TITLE 28—JUDICIARY AND JUDICIAL PROCEDURE § 1410 $25,000, only in the district court for the district in which the defendant resides. (c) Except as provided in subsection (b) of this section, a trustee in a case under title 11 may commence a proceeding arising in or related to such case as statutory successor to the debtor or creditors under section 541 or 544(b) of title 11 in the district court for the district where the State or Federal court sits in which, under ap- plicable nonbankruptcy venue provisions, the debtor or creditors, as the case may be, may have commenced an action on which such pro- ceeding is based if the case under title 11 had not been commenced. (d) A trustee may commence a proceeding arising under title 11 or arising in or related to a case under title 11 based on a claim arising after the commencement of such case from the operation of the business of the debtor only in the district court for the district where a State or Federal court sits in which, under applicable nonbankruptcy venue provisions, an action on such claim may have been brought. (e) A proceeding arising under title 11 or aris- ing in or related to a case under title 11, based on a claim arising after the commencement of such case from the operation of the business of the debtor, may be commenced against the rep- resentative of the estate in such case in the dis- trict court for the district where the State or Federal court sits in which the party com- mencing such proceeding may, under applicable nonbankruptcy venue provisions, have brought an action on such claim, or in the district court in which such case is pending. (Added Pub. L. 98–353, title I, § 102(a), July 10, 1984, 98 Stat. 334; amended Pub. L. 109–8, title IV, § 410, Apr. 20, 2005, 119 Stat. 106; Pub. L. 116–54, § 3(b), Aug. 23, 2019, 133 Stat. 1085.) Editorial Notes AMENDMENTS 2019—Subsec. (b). Pub. L. 116–54 substituted ‘‘$25,000’’ for ‘‘$10,000’’. 2005—Subsec. (b). Pub. L. 109–8 substituted ‘‘$15,000, or a debt (excluding a consumer debt) against a noninsider of less than $10,000,’’ for ‘‘$5,000’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2019 AMENDMENT Amendment by Pub. L. 116–54 effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116–54, set out as a note under section 101 of Title 11, Bankruptcy. EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such ef- fective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11. EFFECTIVE DATE Section effective July 10, 1984, see section 122(a) of Pub. L. 98–353, set out as a note under section 151 of this title. Court Rules and Judicial Documents ADJUSTMENT OF DOLLAR AMOUNTS The dollar amounts specified in this section were ad- justed by notices of the Judicial Conference of the United States pursuant to section 104 of Title 11, Bank- ruptcy, as follows: By notice dated Jan. 31, 2022, 87 F.R. 6625, effective Apr. 1, 2022, in subsec. (b), dollar amounts ‘‘1,375’’, ‘‘20,450’’, and ‘‘25,000’’ were adjusted to ‘‘1,525’’, ‘‘22,700’’, and ‘‘27,750’’, respectively. See notice of the Judicial Conference of the United States set out as a note under section 104 of Title 11. By notice dated Feb. 5, 2019, 84 F.R. 3488, effective Apr. 1, 2019, in subsec. (b), dollar amounts ‘‘1,300’’, ‘‘19,250’’, and ‘‘12,850’’ were adjusted to ‘‘1,375’’, ‘‘20,450’’, and ‘‘13,650’’, respectively. By notice dated Feb. 16, 2016, 81 F.R. 8748, effective Apr. 1, 2016, in subsec. (b), dollar amounts ‘‘1,250’’, ‘‘18,675’’, and ‘‘12,475’’ were adjusted to ‘‘1,300’’, ‘‘19,250’’, and ‘‘12,850’’, respectively. By notice dated Feb. 12, 2013, 78 F.R. 12089, effective Apr. 1, 2013, in subsec. (b), dollar amounts ‘‘1,175’’, ‘‘17,575’’, and ‘‘11,725’’ were adjusted to ‘‘1,250’’, ‘‘18,675’’, and ‘‘12,475’’, respectively. By notice dated Feb. 19, 2010, 75 F.R. 8747, effective Apr. 1, 2010, in subsec. (b), dollar amounts ‘‘1,100’’, ‘‘16,425’’, and ‘‘10,950’’ were adjusted to ‘‘1,175’’, ‘‘17,575’’, and ‘‘11,725’’, respectively. By notice dated Feb. 7, 2007, 72 F.R. 7082, effective Apr. 1, 2007, in subsec. (b), dollar amounts ‘‘1,000’’, ‘‘15,000’’, and ‘‘10,000’’ were adjusted to ‘‘1,100’’, ‘‘16,425’’, and ‘‘10,950’’, respectively. Pub. L. 116–54 subsequently substituted ‘‘25,000’’ for ‘‘10,000’’, see 2019 Amendment note above. § 1410. Venue of cases ancillary to foreign pro- ceedings A case under chapter 15 of title 11 may be com- menced in the district court of the United States for the district— (1) in which the debtor has its principal place of business or principal assets in the United States; (2) if the debtor does not have a place of business or assets in the United States, in which there is pending against the debtor an action or proceeding in a Federal or State court; or (3) in a case other than those specified in paragraph (1) or (2), in which venue will be consistent with the interests of justice and the convenience of the parties, having regard to the relief sought by the foreign representative. (Added Pub. L. 98–353, title I, § 102(a), July 10, 1984, 98 Stat. 335; amended Pub. L. 109–8, title VIII, § 802(c)(4), Apr. 20, 2005, 119 Stat. 146.) Editorial Notes AMENDMENTS 2005—Pub. L. 109–8 amended section generally. Prior to amendment, section related to venue of cases com- menced under section 304 of title 11. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such ef- fective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11. EFFECTIVE DATE Section effective July 10, 1984, see section 122(a) of Pub. L. 98–353, set out as a note under section 151 of this title.