April 24, 2000Oppose S. 353 and H.R. 1875
Class Actions Protect Workers
Dear Senator:We are writing to urge your opposition to S. 353, the so-called Class Action Fairness Act of 1999, and H.R. 1875, the "Interstate Class Action Jurisdiction Act of 1999," passed by the House of Representatives in September of 1999.
Class actions are an important mechanism to deter corporate misbehavior and to compensate working families for injuries they suffer because of financial fraud, illegal anti-consumer business practices, or the failure of insurance companies such as HMOs to provide services. They are most useful when many individuals are similarly injured, but it would be too costly for a single person to sue the wrongdoer. For example, in North Carolina, Sears Roebuck charged some of its credit card customers higher finance charges than allowed under the North Carolina Usury Statute. While the amount of the overcharge might have been small for each account, the settlement in the case put $6.5 million into the pockets of North Carolina working families.
S. 353 and H.R. 1875 will harm consumer class actions by:
-- Allowing corporate wrongdoers to choose the court that will be most favorable to them.
-- Delaying compensation for consumers, by moving complex class actions to the already backlogged and overburdened federal courts.
-- Shielding tobacco companies and HMOs from responsibility for their misbehavior. State judges regularly reinterpret state law as new factual situations arise and community standards of responsible behavior change. This has been reflected in recent tobacco and HMO cases. Federal judges are much more reluctant to expand state consumer protections in new and innovative ways.
Class actions are an important protection for working families that should not be weakened. Please oppose S. 353 and H.R. 1875.
Sincerely,
SEIU
UNITE