Info on Anti-Consumer Class Action Fairness Act, March 15, 2002

NYSTLA Commends 2 New York Republicans, Gilman and King, for Bucking Leadership to Stand up for Consumers



The U.S. House of Representatives on Wednesday, March 13, acted against the interests of small businesses and consumers to federalize virtually all class action litigation by passing H.R. 2341, the so-called "Class Action Fairness Act." The business-backed class action bill passed by a vote of 233-190.



Only 5 Republicans opposed the bill, and two of them, Rep. Pete King (R-Nassau) and Rep. Ben Gilman (R-Rockland), are from New York. They deserve our sincerest thanks for standing up for consumers and the integrity of the state courts in the face of massive pressure from the White House and House Majority Leadership. If you live or work in their districts please call them at 202-225-3121 to thank them for their vote on this bill.



The bill would allow insurance, auto, drug, tobacco, and construction companies as well as banks and HMOs to force class actions filed in state courts into federal court. Corporations believe they gain a more sympathetic hearing in federal courts.



We do not anticipate the bill being taken up by the Senate. Sen. Patrick Leahy (D-Vermont), Chair of the Judiciary Committee does not intend to pursue the bill. However, because Senate rules allow the bill to be grafted onto other pending legislation, we will need to be vigilant for the rest of the session.



House Passes Anti-Consumer Bill to Federalize Class Actions, Encourage Document Destruction, and Require Plaintiff's Lawyers to Make Fee Declarations March 14, 2002



Following a day long debate, the U.S. House of Representatives on Wednesday, March 13, acted against the interests of small businesses and consumers to federalize virtually all class action litigation by passing H.R. 2341, the so-called "Class Action Fairness Act."



The bill, which is anything but fair, would create federal court jurisdiction over -- and thereby permit the removal to federal court of -- virtually all actions filed as class actions in state court.



The vote on Final Passage was 233 to 190, with all but 17 House Democrats who were present opposing the bill. In spite of intense pressure from the White House and House Majority Leadership, five Republicans stood up for the integrity of the state courts. (NOTE: To see how your Representative voted, click here.



A largely identical measure was approved 222 to 207 (15 Republicans opposed the measure and 18 Democrats supported it) by the House in 1999.



The small margin is a setback for the U.S. Chamber of Commerce and major business interests. Intense lobbying by tobacco, HMO, insurance and other business interests failed to produce a mandate for this special interest legislation, which is opposed by state and federal judges, as well as consumer, environmental, and heath advocate groups.



In order to jump start the bill in the Senate, proponents were frantically seeking to substantially shrink Democratic opposition in order to significantly increase the 1999 margin, but tireless lobbying by ATLA succeeded in stopping that effort.



The House repeatedly rejected amendments aimed at making the bill more fairly balanced. It even defeated amendments that would have placed limits on defendants who shred material documents, or who misrepresent whether such documents exist. On the other hand, it agreed to two one-sided amendments that would force plaintiffs attorneys, but not defense attorneys, to make certain declarations regarding fees.



The bill now moves to the Senate where ATLA lobbying stopped a substantially similar bill in the previous Congress. It will be referred to the Judiciary Committee whose Chairman, Patrick Leahy (D-VT), strongly opposes the bill. Still, under Senate Rules, any Senator may seek to offer the bill as an amendment to another bill on the Senate Floor. ATLA will continue to aggressively oppose the bill and lobby all Senators.



Source: ATLA



March 12, 2002



Alert: House to Consider Class Action Fairness Act



Tomorrow, March 13, the House will consider H.R. 2341, the so-called Class Action Fairness Act. The bill would give defendant companies the right to remove state court class actions to federal court. We are urging you to call your Member of Congress to ask them to oppose H.R. 2341. The Capitol Switchboard, which will transfer you to the member's office, is 202-225-3121.



The last time this bill was voted on in the House in 1999 it barely passed ? 218 to 206. While we expect this anti-consumer measure to pass again, it is important to get as many NO votes as possible ? particularly from freshman members for whom this is their first major tort vote in Congress.



Also, there were 13 Republicans who opposed the House legislation in 1999; but 17 Democrats voted for it.



A priority list of targets can be downloaded here . The top priority calls are to Freshman Democrats (marked Fresh), those Republicans who voted with us the last time, and some more moderate Democrats who have not yet indicated how they will vote. Freshman Republicans are probably a long shot.



If your Member of Congress is not on this list he or she is either likely in favor of the bill (most Republicans) or opposed to the bill (most Democrats).

For Public Citizen's letter in opposition to the bill, click here



For our class action webpage, which includes a list of bill opponents, other groups' opposition letters and fact sheets, click here



Source: Public Citizen's Congress Watch