Pro Corporate Bush Signs Bill to Curb Class-Action Suits
Friday, February 25, 2005 at 04:49PM As President Bush signed legislation
Friday aimed at discouraging multimillion-dollar class-action lawsuits,
he made clear he had his sights set on much broader restraints. Next
up, Bush said, should be curbs on asbestos litigation and medical
malpractice awards. "We're making important progress toward a better
legal system," he said during an East Room signing ceremony for the
class-action bill. "There's more to do." Surrounded by a bipartisan
group of lawmakers, the president hailed the legislation that had been
bitterly opposed by consumer groups and trial lawyers but nonetheless
attracted some Democratic supporters.Bush said having federal judges
take most large class-action lawsuits away from state courts would
"prevent trial lawyers from shopping around for friendly local venues."
Under the bill, 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. And limiting
lawyers' fees in settlements where plaintiffs win product discounts
instead of money, the president said, would keep lawyers from reaping
"huge pay-outs while the plaintiffs ended up with coupons worth only a
few dollars." The law links attorney fees to the coupons' redemption
rate or actual hours spent on the case. [more]
- Class-Action Curbs Could Consolidate Law Firms[more]
