Posted on 02/18/2005 9:17:32 AM PST by Pyro7480
Bush Signs Bill Curbing Class-Action Suits
By JESSE J. HOLLAND, Associated Press Writer
WASHINGTON - President Bush on Friday signed a bill that he says will curtail multimillion-dollar class action lawsuits against companies and "marks a critical step toward ending the lawsuit culture in our country."
The legislation aims to discourage multimillion-dollar class-action lawsuits by having federal judges take them away from state courts, a victory for conservatives who hope it will lead to other lawsuit limits. The president has described class-action suits as often frivolous, and businesses complain that state judges and juries have been too generous to plaintiffs.
"This bill helps fix the system," Bush said in the East Room of the White House, his first bill signing ceremony this year. "Congress has done it's duty."
But during the brief ceremony, Bush repeatedly described the bill as just a beginning in his drive to place much broader restraints on the American legal system.
"We're making important progress toward a better legal system," he said. "There's more to do. ... We have a responsibility to confront frivolous lawsuits head-on."
Under the legislation, class-action suits seeking $5 million or more would be heard in state court only if the primary defendant and more than one-third of the plaintiffs are from the same state. But if fewer than one-third of the plaintiffs are from the same state as the primary defendant, and more than $5 million is at stake, the case would go to federal court.
Consumer groups and trial lawyers fought against the bill, but lost their struggle when Republicans gained seats in last fall's elections and Democrats defected on the issue.
"The House of Representatives joined the Senate in sending a clear message to the nation: the rights of large corporations that take advantage of seniors, low-wage workers and local communities are more important than the rights of average American citizens," said Helen Gonzales of USAction, a liberal, pro-consumer activist group.
It hurts them in the long run, but in the short run those trial lawyers are still just as rich and *far* more motivated against us than ever before.
But in 5 years, they'll have far less money to spend against us.
And the crack on the liberal world grows yet larger! Hoorah!
The Dems are still howling about the "Serious Election Irregularities" in 2004. Seems like this bill would have casued more howling from the crowd that deigns personal responsibility.
I haven't heard them moan a peep about this - which makes me think it won't amount to much..
Nobody will see lower prices or charges for services because of this Bill. As much as I applaud President Bush and the Congress for getting this bill passed and signed, we will all continue to pay more for goods and services.
If we do, please feel free to remind me that I was wrong.
How does this hurt Dimms among lawyers??
Glad I live in a BIG RED State!
It's really too bad that they quoted an opponent (from what might be called a 'special-interest group')as to why this is bad -- but the administration doesn't bother to tell us why it is good. (Either that, or the 'reporter' didn't bother to tell us so.) This is a VERY important development.
Yes....I heard Rush say that the states are MUCH more generous in awards.
I think the next 48 month list is going to be longer and even better, but I always appreciate you reminding us of why we re-elected Dubya.
Don't you love watching critics from either side silenced? LOL
Feels nice to win a domestic battle so early.
No, it means they'll be heard in Federal Court. It's easier to put a cap or some kind of restraint on Federal suits than state. It's a small win but a win none the less.
Some of the class-action lawyers become so rich that they buy mansions in gated communities where you and I are not allowed. At the same time, some companies which they sued have had to lay off workers and cut back on production, which means less people working and paying taxes. It hurts us all.
To make a long story short: they don't necessarily know how many plaintiffs there are or how much they were injured when the suit was initially filed. That is discovered over the course of the litigation, so by the end they divide up Y dollars amongst X plaintiffs, and it ends up being $3.00 or $300 or $30,000 apiece. Anybody who has a claim which they know to be more than paltry is welcome to opt out of a class action and file their own independent lawsuit.
In addition, even if a large company harms a million people for $5 apiece, they have still committed legally recognizable harm to the amount of $5,000,000. If lawyers bring a class action lawsuit, do all the work, put up (almost) all the fees and expenses, and collect a reasonable fee of 25%, they end up with $1,250,000.
That sounds like a pile of money, but, on the other hand, it's a fee of $1.25 apiece for a million clients, each of whom they managed to recover funds for. The company lost what it stole in the first place; the customers managed to get a refund (which they would not have been otherwise able to get) minus a reasonable attorney's fee; the attorneys were compensated for the labor and risk.
Many class-action lawsuits are justified; many are ill-founded or ridiculous. Continuing reform of this powerful legal tool is an excellent idea; moving more class actions to federal court is a good start.
All else aside, class warfare rhetoric like "X is so rich that he lives in a gated community where you and I are not allowed" is silly.
Many Freepers buy things called "their houses" where you and I are not allowed. The rich don't get to have private property too?
LOL, I just had a lawyer in my office whining about this! He was going on and on about how the drug companies won't care who they hurt and kill with poorly researched drugs now because they don't have to worry about big lawsuits. They can blame their own greed for this bill.
It takes money away from the funding of the Dems. It's a beautiful thing!
A BIG little step in tort reform.
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