The Class Action Fairness Act, a version of which has already passed the House with White House support, may be brought to the floor of the Senate tomorrow, but Democratic leaders are saying they have enough votes lined up for a filibuster to prevent its passage (Jesse J. Holland, “Supporters looking for more votes to help class action legislation past filibuster”, AP/San Francisco Chronicle, Oct. 20; Helen Dewar, “GOP Pushes Vote to Curb Class-Action Suits”, Washington Post, Oct. 21; Heather Fleming Phillips, “Group tries to rein in lawsuits”, San Jose Mercury News, Oct. 21). If so it’s a shame, the more so as some of the most persuasive argumentation for the CAFA has come from New Democrat circles, especially from Walter Dellinger, solicitor general during the Clinton Administration, now a professor at Duke Law and partner at O’Melveny & Myers (home of our co-blogger Ted Frank). (“The Class Action Fairness Act”, Progressive Policy Institute, Mar. 11). “The states whose courts have honorably decided not to play class action games are, contrary to fundamental federalism principles, being forced to transfer authority over their citizens’ claims and the interpretation of their own laws to other states whose courts seem to have an insatiable appetite for such lawsuits,” according to Dellinger. See New Democrats Online, “Breakthrough in the Courts?”, Feb. 19; “Compromise on Class Action Reform”, May 1.
Posts Tagged ‘Class Action Fairness Act’
Class Action Fairness Act: more editorials
Last month the Hartford Courant editorially endorsed the Class Action Fairness Act: “No one in Congress is proposing doing away with class-action lawsuits. Rather, this overdue legislation would curtail some of the worst abuses. Legislators have debated the issue long enough. There’s no good reason to wait another year to adopt this important reform.” (“Stop Class Action Abuses”, Aug. 22, no longer online). This weekend the New York Daily News takes a sharper tone: “Who could be against this rational reform? The trial lawyers’ lobby, that’s who. The sharks are not about to surrender their feeding grounds. Sens. Chuck Schumer and Hillary Clinton could have a huge impact on the matter, but so far both appear happy in the role of remora.” (“End lawyers’ shopping spree” (editorial), New York Daily News, Sept. 28).
Notwithstanding Schumer’s and Clinton’s stance, Business Week notes that the bill has won significant support among moderate-to-liberal Democrats (Lorraine Woellert, “Tort Reform Even a Democrat Could Love”, Jun. 2). A study from the Illinois Civil Justice League finds that, contrary to widely repeated reports, it is untrue that the state courts will lose jurisdiction over the great majority of the class actions they now hear. Meanwhile, Sen. John Breaux (D-La.) has been promoting a watered-down alternative to the legislation, but last week Sen. Chuck Grassley (R-Ia.) blasted the Breaux alternative as a “poison pill” which would doom class action reform efforts (Mark A. Hofmann, “Grassley blasts competing class-action reform plan”, Business Insurance, Sept. 23). (Earlier editorial (Washington Post, Christian Science Monitor, etc.): see our Jun. 25 report.)
Class Action Fairness Act on ABC
Though the “20/20” web page is featuring Macaulay Culkin’s new role as “a cross-dressing, gay, sociopathic killer,” the ABC program will also have a John Stossel segment on Friday, September 5, on “magnet county” state courts and on S. 274, the Class Action Fairness Act of 2003. The bill would expand federal jurisdiction over class actions, limiting the ability of plaintiffs to file multiple class actions in multiple state courts in hopes of finding a court willing to certify a nationwide class. Earlier discussion: June 25 and here (scroll to “Madison County”). Addendum: transcript of Stossel show is here.
Class Action Fairness Act editorials
“[N]o area of U.S. civil justice cries out more urgently for reform than the high-stakes extortion racket of class actions, in which truly crazy rules permit trial lawyers to cash in at the expense of businesses. Passing this bill would be an important start to rationalizing a system that’s out of control,” editorializes the Washington Post (“Reforming Class Actions”, Jun. 14). “Federal courts are better equipped to handle complex cases with national implications. Of course, they’re also more likely to dismiss class-action suits. So it’s no wonder that trial lawyers are up in arms about this legislation,” notes the Chicago Tribune, which likewise supports the bill (“The class action money-chase”, Jun. 18). As does the Las Vegas Review-Journal (“A real class act”, Jun. 13) (& see Apr. 25-27 (Christian Science Monitor).
The bill passed the House Jun. 12 by a 253-170 vote with not only near-unanimous GOP support but also significant backing among liberal lawmakers, including Emanuel (D-Ill.), Harman (D-Calif.), Ford (D-Tenn.), Peterson (D-Minn.) and McCarthy (D-N.Y.), according to roll calls posted by the National Association of Manufacturers, which like the U.S. Chamber and virtually every other business group supports the bill. See also Christopher Armstrong, “Class Action Reform Gets Verdict in the House, Jury Still Out in the Senate”, Center for Individual Freedom, Jun. 19. Opposed: New York Times, Philadelphia Inquirer, Columbus Dispatch, Rep. John Conyers, as well as L.A. Times and Milwaukee Journal-Sentinel (not online).