Judiciary Committee Passes Class Action Reform


In: All News   Posted 04/11/2003
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WASHINGTON – The Senate Judiciary Committee took the first step toward tort reform Thursday by passing the Class Action Fairness Act of 2003. U.S. Sen. John Cornyn, a member of the committee, co-sponsored the bipartisan legislation to reform the class action system and make it simpler, fairer and faster. "The class action is a tool meant to serve a useful purpose. The intent was to aid consumers without the resources to file a lawsuit, an opportunity to band together with others who have similar claims. Our system has turned into one that only benefits the lawyers – not the legitimate consumers who have been wronged,” Cornyn told his colleagues on the committee during consideration of the bill. “Consumers receive minimal payments or coupons that they may or may not be able to use – while lawyers collect enormous fees. This is not justice; it is a problem that Congress must fix.” the legislation, S. 247, establishes a new bill of rights for consumers involved in class action cases. It provides for judicial review and approval of non-cash settlements, protection of class members from loss due to payments to class counsels, standardized settlement notification information for clients relayed in “plain English,” and notification requirements for settlement notifications to state and federal officials. the crux of the legislation is a requirement that federal district courts be granted original jurisdiction of any civil action exceeding $5 million and modifies diversity requirements providing consumers with more options."Our system is not just broken, it is falling apart,” Cornyn said. “I am proud to be a co-sponsor of the bill, and hope that this important legislation will be the first of many successful attempts to reform our civil justice system.” the legislation was introduced by Sen. Chuck Grassley (R-Iowa), and has 15 co-sponsors. It now moves to the full Senate for a vote.