Dear Mr. Chairman:

On behalf of the 14,000 members of the National Association of Manufacturers, thank you for holding the July 21 hearing on H.R. 1875, the Interstate Class Action Jurisdiction Act. The NAM would appreciate your including this letter in support of H.R. 1875 as part of the hearing record.

The Interstate Class Action Jurisdiction Act is a long-overdue update of statutes dealing with federal jurisdiction that require a minimum of $75,000 in dispute per plaintiff. At the time those statutes were written, modern-day class-action claims - which often involve little money per claimant but represent billions of dollars of liability for defendants - were not contemplated.

In addition, far too many class-action claims that are heard in one state's court system affect the laws in other states. Thus, it would be appropriate for federal courts to have jurisdiction over nationwide, multi-million dollar lawsuits.

H.R. 1875 will not deprive any legitimate class-action claimants of their day in court. It is procedural only. Specifically, H.R. 1875 would allow any plaintiff or defendant to remove a class-action case to federal court if the amount in dispute is $1 million or more; if the class has at least 100 members; and if any class member is from a state different than any defendant. Provisions ensure that truly local cases would continue to be heard in state courts.

The Interstate Class Action Jurisdiction Act enjoys broad, bipartisan cosponsorship. The NAM hopes that the Committee on the Judiciary will be able to report H.R. 1875 with a favorable vote as soon as possible.

Sincerely,

cc: Members of the House Committee on the Judiciary