July 03, 2019 Articles

The Edge Act: Another Avenue for Removal

A little-known, rarely used statute offers the opportunity for removal of cases involving foreign transactions.

By Amanda Lawrence, Scott Sakiyama, and Nancy Turner

As any first-year law student could tell you, “Any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the United States . . . where such action is pending.” 28 U.S.C. § 1441(a). Generally, the removal statute is understood to mean that defendants can remove to federal court wherever there is diversity jurisdiction or  the action includes claims arising from the Constitution or other federal laws. However, there is a lesser known avenue for removal that those in the banking and finance industry should familiarize themselves with: removal under the Edge Act. 12 U.S.C. § 611 et seq.

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