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.
The Bush Effect. Screwing the lawyers is a very good move.
--now let's march on to protection of manufacturers of anything from frivolous suits over illegal or unsafe use of the product--
So does this mean the Vioxx lawyers who are advertising all over the place on TV saying "have you been harmed by Vioxx, call us now as you may be entitled to a monetary award".
And lawsuits such as these are now banned from getting more than a certain amount, right? In other words they can sue but the award is capped.
Got a notice last month.
I am a plaintiff in a case involving supposed overcharges by American Express. I get $3.00. The lawyers got 8 million.
Screw-um.
I LOVE this!
YEEHAW!
This is absolutely delicious on several levels.
I'm not sure I understand how this will curb class-action suits. Are the federal courts automatically tougher on plaintiffs?
This is only the first step.
That's beautiful! Tort reform, baby!
President Bush - First 48 Months
Presidency of George W. Bush -- the first 48 months
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President Bush signing a federal ban on Partial Birth Abortion
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U.S. Forces In Baghdad
The good news is that this cuts down on judge shopping. The gun grabbers were suing in Brooklyn for a reason.
What a beautiful addition to your beautiful list, Southack!
Carolyn
The bad guys still get hurt, the victims still get compensated, the budget goes into the black, and the lawyers get screwed.
TS
On the other hand, it's not like you did any of the work in the lawsuit to recover the overcharge.
It cuts down on the horrendous amounts of judge-shopping that was going on. Trial Lawyers have found that by filing in multiple states that they can use large judgements in those areas from the recent past to frighten defendants into settling for large sums, among other such abuses. Federal courts take fewer frivilous suits, and it is harder for a judge-shopping attorney to appear "clean" to a new federal judge than to a new state judge. Different state standards for giving jury awards are also bypassed with this new law. Now it's all federal for the large sums.
More needs to be done, but OWF, this is SUCH a huge step in defunding the Left. First labor unions, now the trial lawyers.....I'm hoping foreign interference in our elections will be targeted next.
He'll be paying larger fees as that company raises rates to pay its litigation costs, though.
$3 also fails to give him any incentive to support the trial lawyers in their efforts to raise the cost of doing business.
He got $3, the attorneys got $8 million. Well, the guy who got $3 but now has to pay higher costs to use that same business might just want to see a disincentive applied such that attorneys weren't so anxious to try such cases.
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