Issue: Gaping loopholes in current law permit trial lawyers in class action suits to shop for plaintiff-friendly courts that favor local lawyers over out-of-state companies. Currently, a class action suit can be moved to federal court only if all plaintiffs reside in different states from all defendants; and if the claim exceeds $75,000. Many NAM members are named in class action suits merely to bring in "deeper pockets." Changes are needed to ensure that a higher share of such cases be heard in federal courts, which are designed to handle cases that cross state boundaries.

Status/NAM Action: The NAM, as co-chair of a broad-based industry coalition, has conducted Capitol Hill press events and numerous lobbying visits in support of reform bills H.R. 1875 (Goodlatte—R-VA/Boucher—D-VA) and S. 353 (Grassley—R-IA/Kohl—D-WI). H.R. 1875 cleared the House 9/23/99 on a 222-207 vote. The Senate Judiciary Committee 6/29 approved S. 353 on an 11-7 vote. The bills would allow any party to request that any class-action case be moved to federal court if it involves: interstate or foreign plaintiffs and defendants; $1 million or more; and 100 or more plaintiffs. No action planned in the Senate prior to adjournment.