CONTACTS: Frank Coleman/Linda Rozett
(202)463-5682/888-249-NEWS
Thursday, September 23, 1999
Class Action Reform Vital
to Business Says United States Chamber
of Commerce
WASHINGTON, D.C. – The Interstate Class Action Jurisdiction
Act currently before Congress is essential to address the frivolous
lawsuits currently undermining both small and large businesses,
according to the United States Chamber of Commerce.
"This bill will stop abusive cases that trample the rights of
defendants and do little more than line the pockets of unscrupulous
trial lawyers," said U.S. Chamber of Commerce Executive Vice
President Bruce Josten. "HR 1875 is bi-partisan lawmaking at its
best."
The explosion of class action suits has resulted in higher
prices, higher insurance premiums, lower earnings and outrageous
litigation costs for both defendants and plaintiffs. In some cases,
multi-million dollar awards go entirely to cover lawyers’ bills and
the actual claimants receive little or nothing.
Large, diverse class action cases, with parties from
different states, are better served by the federal courts than state
courts. More and more class action suits are being kept in the state
court system by attorneys seeking an unfair "home field"
advantage.
"A variety of legal ruses in states with lax rules and
procedures are preventing class action suits from being heard where
they belong: in federal court." said Josten. "Legal sleight-of-hand
should have no place in our courts. This bill will go a long way
toward improving the rights of defendants and protecting the
interests of plaintiffs."
The Interstate Class Action Jurisdiction Act of 1999,
sponsored by Representatives Bob Goodlatte (R-VA), Rick Boucher
(D-VA) and Jim Moran (D-VA), will guarantee that many of the more
abusive class action suits that are now caught in state courts will
be eligible for federal jurisdiction. The bill is procedural in
nature and does not undermine the rights of plaintiffs to sue. The
legislation simply recognizes that certain large, interstate class
actions more appropriately belong in federal court. Its swift
enactment into law is vitally important to America’s
businesses.
The United States Chamber of Commerce is the world’s largest
business federation, representing more than three million businesses
and organizations of every size, sector and region.
END
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