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Bush legal reform suits from state to federal courts { February 13 2005 }

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   http://www.chicagotribune.com/business/chi-0502130031feb13,1,6555.story?coll=chi-business-hed&ctrack=1&cset=true

http://www.chicagotribune.com/business/chi-0502130031feb13,1,6555.story?coll=chi-business-hed&ctrack=1&cset=true

CLASS-ACTION CURB: Senate votes to move suits from state to federal level

Written by William Sluis from staff and wire reports
Published February 13, 2005


Congress took a major step to overhaul the nation's legal system, as the Senate approved a measure long sought by business to clamp down on class-action lawsuits.

Republicans hailed the lopsided 72-26 vote as an important legislative victory.

"The class-action bill is a strong step forward in our efforts to reform the litigation system and keep America the best place in the world to do business," President Bush said.

Republican leaders said they hoped approval of the bill would build momentum for other measures on the GOP agenda, including new curbs on bankruptcy, asbestos litigation and medical malpractice.

Class-action suits allow plaintiffs with claims against the same defendant to combine their cases into one suit.

Under the legislation passed by the Senate, large multistate suits--such as the state governments' lawsuit against tobacco companies, which ended in a $246 billion settlement--would be moved from state to federal court, where judges tend to be more favorable to business and less likely to approve outsize damages.

Class-action lawsuits could be heard in state court only if the damages sought were less than $5 million and more than two-thirds of the plaintiffs were from the same state.

Proponents said the bill was necessary to curb abusesof the system, including "forum shopping," where lawyers file large suits in obscure local courts.

Watch for: Quick approval of this measure to take place in the House, followed by renewed efforts to curb other areas of controversial lawsuits, notably those involving medical malpractice.



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