Class Action Fairness Act Falls At First Hurdle

by Glen Shapiro, LawAndTax-News.com, New York

13 July 2004

The Class Action Fairness Act received a significant setback last week in the US Senate, failing to breach the 60 vote threshold needed to ensure the legislation's continued passage through Congress.

The bill seeks to move the majority of class action suits from state to federal courts, as the latter usually accept fewer cases and grant smaller awards. It also contains provisions designed to clamp down on the practice of venue shopping, whereby attorneys seek to have cases tried in courts which have handed down large damages awards in the past.

The failure of the legislation to secure the required number of votes has been welcomed by consumer groups and the plaintiff bar, which had condemned it as an attempt to help big businesses avoid damaging lawsuits, and argued that in any case, the federal courts are too under-funded to cope with the influx of complex cases that would result if the law was passed.

It is expected that the Class Action Fairness Act will now be put on hold until after this year's election.

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