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         DATE:           September 23, 1999
         CONTACT:  MICHELLE SEMONES 
 
GOODLATTE CLASS ACTION LEGISLATION PASSES
HOUSE OF REPRESENTATIVES
 
    Congressman Bob Goodlatte announced that the Interstate Class Action Jurisdiction Act of 1999, H.R. 1875, passed the House of Representatives today by a vote of 222 to 207.  The legislation, which has bipartisan support, was introduced by Congressman Goodlatte, Congressman Rick Boucher (D-VA), Congressman Ed Bryant (R-TN), and Congressman Jim Moran (D-VA) in March of this year. 

    The Interstate Class Action Jurisdiction Act streamlines the ability of courts to deal with class action lawsuits by making it easier for those involved in the case to transfer the suit from state courts to federal courts.

    "This much-needed bipartisan legislation corrects a serious flaw in the federal jurisdiction statutes.  At present, statutes forbid federal courts from hearing most interstate class actions - the lawsuits that involve more money and touch more Americans than virtually any other litigation pending in the American legal system," said Congressman Goodlatte. "Federal courts were designed by the Framers of the Constitution to handle large cases that crossed state boundaries.  This measure puts these suits in the federal jurisdiction where they belong."

    The Interstate Class Action Jurisdiction Act allows federal courts to hear purely interstate class action cases and allows any party to the suit to remove the class action case to federal court. The legislation stems from the widespread abuse of what was meant to be a procedural device of last resort where people with identical claims, such as air crash victims, could bring their case at one time in one court.

    "This legislation does not limit the ability of anyone to file a class action lawsuit, nor does it change anybody's right to recovery.  H.R. 1875 specifically provides that it will not alter the substantive law governing any claims as to which jurisdiction is conferred," stated Goodlatte.  "This legislation closes the loophole, allowing federal courts to hear big lawsuits involving truly interstate issues, while ensuring that purely local controversies remain in state courts."