Class Action Fairness Act of 2005

Congress Changes Class Action Rules | WP | 2.17.05

Congress today handed President Bush a major second-term victory, passing legislation he had advocated during his reelection campaign to restrict class-action lawsuits.

The bill, the Class Action Fairness Act of 2005, passed the House today by a vote of 279-149, after having sailed through the Senate last week in a 72-26 vote. Bush is expected to sign it into law Friday.

The measure would shift most large class-action lawsuits involving parties from different states to federal courts, removing them from the jurisdiction of state courts that historically have been more receptive to such suits. The legislation had been strongly pushed by business groups, which argued that class-action lawsuits were enriching trial lawyers, who often filed them in certain jurisdictions known for sympathetic judges and juries. …

Under the new law, class-action suits seeking more than $5 million would move to federal court if fewer than a third of the plaintiffs were from the same state as the primary defendant. If the primary defendant and more than a third of the plaintiffs were from the same state, the case could still be heard in state court. …

S.5 | 2.11.05

A bill to amend the procedures that apply to consideration of interstate class actions to assure fairer outcomes for class members and defendants, and for other purposes.

H.R.516 | 2.17.05

To amend the procedures that apply to consideration of interstate class actions to assure fairer outcomes for class members and defendants, to outlaw certain practices that provide inadequate settlements for class members, to assure that attorneys do not receive a disproportionate amount of settlements at the expense of class members, to assure prompt consideration of interstate class actions, to amend title 28, United States Code, to allow the application of the principles of Federal diversity jurisdiction to interstate class actions, and for other purposes.