New US Congress Expected To Focus On Class Action Reform

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

10 November 2004

Following the strengthening of the Republican presence in the House and Senate, observers are predicting that class action reform will be among the priorities of the new US Congress when it reconvenes in January.

Although little progress beyond passing run-of-the-mill spending bills was expected from Congress as it is currently constituted, it is expected that swift action will be taken next year on issues such as legal reform and the reauthorization of parts of the Patriot Act.

In July of this year, the Class Action Fairness Act received a significant setback in the Senate, failing to breach the 60 vote threshold needed to ensure the legislation's continued passage through Congress.

The bill sought 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 contained 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 was welcomed at the time 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.

Although the legislation fell in the upper house following a filibuster on an amendment to the Act, it is thought that the unamended bill would now achieve the required 60 votes.

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