House Passes Class Action Reform Bill

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

21 February 2005

The US House of Representatives on Thursday passed legislation which aims to reform the country's class action system.

In a move seen as a personal victory for President Bush, who made passing this and other tort-related legislation one of his key second-term priorities, the lower chamber approved the class action refoms by 279 votes to 149. The bill passed the Senate earlier this month.

Speaking with regard to the vote, House Majority Whip, Roy Blunt suggested that:

"Frivolous lawsuits are clogging America's judicial system, endangering America's small businesses, jeopardising jobs and driving up prices for consumers."

Under the terms of the new legislation, class action suits in which less than one-third of the plaintiffs are resident in the same state as the defendant will be heard in federal rather than state courts.

This is intended to prevent plaintiffs or their legal teams from 'shopping around' for state courts known for awarding large amounts to successful claimants.

Recommended