SENT TO THE FULL SENATE JUDICIARY COMMITTEE

June 8, 2000

The Honorable Orrin Hatch
Chairman
Committee on the Judiciary
United States Senate
Washington, DC 20510

Dear Mr. Chairman:

On behalf of the 14,000 member companies of the National Association of Manufacturers – and the 18 million people who make things in America – I urge your strong support for S. 353, the Class Action Fairness Act, when it is considered by the Senate Committee on the Judiciary.

The Class Action Fairness Act would restore the Founders intention that lawsuits involving litigants from multiple states or foreign countries should be heard in federal court. It is particularly unfair that, under current rules of judicial procedure, a state court can apply only its own state law in hearing a multi-million dollar class-action lawsuit involving litigants from across the country. Historically, federal courts protect the laws and interests of the various states.

In addition, far too many elected state court judges certify nationwide, multi-million member classes where settlements of a few dollars per plaintiff are immediately offered. The lawyers, of course, retain a hefty percentage of the overall settlement value. For the defendants, the settlement is cheaper than challenging the validity of the claim. Consumers, however, end up paying through higher prices. Federal judges are, for the most part, less tolerant of such lawsuits.

By reasserting that federal courts have primary jurisdiction over national, multi-million dollar lawsuits, S. 353 merely restores the original intent that such litigation belongs in federal court. Your vote in favor of the Class Action Jurisdiction Act would be appreciated.

Sincerely,

Michael E. Baroody
Senior Vice President
Policy Communication and Public Affairs