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Citizens for a Sound Economy January
19, 2000
CSE:
Class Action Lottery Frivolous, Tort Reform Necessary
Contact: Richard Killion
CSE: Class Action Lottery Frivolous, Tort Reform
Necessary
CONCORD – Today, New Hampshire Citizens for a Sound Economy (NH
CSE) lashed out against frivolous lawsuits, demanding that the legal
system be returned to honest Americans with real grievances.
“Right now trial lawyers are using a legal tool called the class action
to rob decent, honest Americans of their money, trust, freedom and peace
of mind” said New Hampshire CSE Director Rich Killion. “It’s time to stop
this injustice.”
The U.S. House passed legislation that would make it easier to get
class actions into federal court, where judges are more inclined to put
the interests of the class members ahead of those of the trial lawyers.
The legislation makes it easier to have a federal judge (who is more
inclined to look out for the interests of class members, rather than class
lawyers) rule on whether specific circumstances warrant a class
action.
- A class action is a procedural device used in state and federal
courts where the claims of hundreds or even thousands of individuals are
ruled upon in one court case. Used for their intended purpose, class
actions can be a positive device, but plaintiffs’ lawyers, like the ones
we see on TV, are abusing class actions at the state level.
- Many times these lawyers file class actions and make millions in
legal fees, while the class members they're supposed to represent
receive coupons, pennies or actually end up paying. For
instance:
The Chicago Tribune reported that a class action settlement
allowed for an $8.5 million payment to the class lawyers, while
members of the class actually had their mortgage accounts debited by
$93.
An editorial in the San Diego Union-Tribune bemoaned a class
settlement where the lawyers received $140,000, while each class
member received a paltry 93 cents.
And most recently, the lawyers suing the Publisher’s Clearing
House Sweepstakes are set to receive $3 million, while the members of
that class are given pennies or more chances to win.
- Consumer class members have no control over how these cases are
handled. Again and again, they find themselves forced into a settlement
where they receive little, while the lawyers receive millions.
How can this be happening? State courts many times do not enforce the
rules that govern class actions. Meaning, they allow class actions to go
forward and eventually settle even though the class members may have been
better off bringing their own lawsuit.
By stopping frivolous class actions, we can give back our legal system
to decent honest Americans with real grievances.
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