CONTACTS: Frank Coleman/Linda Rozett
(202)463-5682/888-249-NEWS
Thursday, September 23, 1999
United States Chamber of
Commerce Endorses House Action on
Class Action Reform
WASHINGTON, D.C. – The Interstate Class Action Jurisdiction
Act (H.R. 1875) passed the House of Representatives 222 to 207 to
the applause of small and large businesses across the country,
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 bill, sponsored by Representatives Bob Goodlatte (R-VA),
Rick Boucher (D-VA) and Jim Moran (D-VA), now moves to the
Senate.
"The Senate should take its cue from the House and deny legal
chicanery a place in our courts," said Josten. "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.
This bill will go a long way toward improving the rights of
defendants and protecting the interests of plaintiffs."
More and more class action suits are being kept in the state
court system by attorneys seeking an unfair "home field" advantage.
This "gaming" of the system 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.
The Interstate Class Action Jurisdiction Act of 1999
guarantees 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.
"Swift action by the Senate and the Administration is vitally
important to America’s businesses," said Josten.
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
99-172