[ql06] TORTS: U.S. Class Action Reforms Crash and Burn
- From: Stephen Kennedy <2srk@xxxxxxxxxxxxxxxx>
- To: ql06@xxxxxxxxxxxxx
- Date: Sun, 26 Oct 2003 09:26:39 -0500
Corporate tortfeasors must be crying in their beer (single-malt Scotch more
likely) over the failure of Bush's class action reforms to pass the Senate.
Now they'll have to wait a year, and grease a few more senators, before
they try to ram this through again.
I see business groups are arguing that companies are being sued out of
business. I'd like to see one that didn't deserve it. It's good to see the
little guy win one for a change.
Senate blocks limits on class action suits
By Deborah McGregor in Washington
Financial Times www.ft.com
Published: October 22 2003 20:16 | Last Updated: October 22 2003 20:16
The US Senate on Wednesday blocked business-backed legislation aimed at
curbing class action lawsuits, dealing a blow to President George W. Bush's
longstanding drive for sweeping legal reforms.
In a 59-39 vote, Republicans, who control the Senate, fell one vote short
of prevailing in a procedural showdown with Democrats that underscored the
difficulties of moving Mr Bush's policy agenda through the narrowly divided
chamber. The issue is now considered dead for the year.
Republicans, from Mr Bush down, had argued that shifting many class action
cases from state to federal courts, as the legislation provided, would
discourage frivolous lawsuits. But Democrats said the Republican leadership
had excluded them from crafting a compromise that would have been
acceptable. And they said the bill was meant mainly to hurt trial lawyers
who litigate the cases.
Heading into an election year, both parties are keenly attuned to their
campaign contributors. Trial lawyers give most of their contributions to
Democrats, while business tends to support the Republicans.
Class action lawsuits allow plaintiffs whose injuries might not be worth
enough to justify bringing individual suits to combine their claims into
one lawsuit against a common defendant.
Business had pushed hard for the legislation, saying many companies are
being sued out of existence. They were encouraged when Republicans swept
Congress in last year's elections. Mr Bush has made countless speeches
touting the need to tackle the nation's litigation crisis.
But the highly charged issue failed to swing enough Democrats, who argued
that the legislation would penalize the victims of corporate wrongdoing.
"Defendant corporations don't want to be held liable for their misconduct
and if held responsible they want to pay less money," said Richard Durbin,
an Illinois Democrat.
Meanwhile, prospects have grown increasingly dim for legislation tackling
other legal reforms. Negotiations in Congress aimed at finalizing asbestos
litigation have so far failed to produce a compromise.
Medical malpractice legislation is likewise stalled. With Congress
scheduled to adjourn for the year on November 7, there appears little
prospect for further action. Although Republicans can try again next year,
it is notoriously difficult to enact such controversial measures in a
presidential election year and most business lobbyists now consider the
chances extremely slim.
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