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Bush Signs Bill Curbing Class-Action Suits
Yahoo! News (AP) ^
| 2/18/2005
| Jesse J. Holland
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.
TOPICS: Breaking News; Constitution/Conservatism; Crime/Corruption; Culture/Society; News/Current Events; Politics/Elections
KEYWORDS: bill; billsigning; bush; bush43; classaction; lawsuits; lawyers; reform; term2; tort; tortreform
Navigation: use the links below to view more comments.
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I didn't see this posted yet.
1
posted on
02/18/2005 9:17:37 AM PST
by
Pyro7480
To: Pyro7480
The Bush Effect. Screwing the lawyers is a very good move.
2
posted on
02/18/2005 9:18:27 AM PST
by
pissant
To: Pyro7480
We're hearing all kind of whining from the jury shopping lawyers and their supporters but it all boils down to the fact that they got too greedy, and they know it.
3
posted on
02/18/2005 9:20:58 AM PST
by
Hillarys Gate Cult
("I can saw a woman in two/But you won't want to look in the box when I do" - Warren Zevon)
To: Pyro7480
--now let's march on to protection of manufacturers of anything from frivolous suits over illegal or unsafe use of the product--
4
posted on
02/18/2005 9:22:37 AM PST
by
rellimpank
(urban dwellers don' t understand the cultural deprivation of not being raised on a farm)
To: Pyro7480
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.
5
posted on
02/18/2005 9:22:57 AM PST
by
stopem
(Support the troops yellow ribbon purse-key-holders.)
To: Pyro7480
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.
6
posted on
02/18/2005 9:23:35 AM PST
by
MindBender26
(Having your own XM177 E2 means never having to say you are sorry......)
To: Pyro7480; Miss Marple; Howlin; MeekOneGOP; Molly Pitcher; GretchenM; kayak; kitkat
To those who say there is NO difference between President Bush and a Dem..........NEENER NEENER NEENER!!
I LOVE this!
7
posted on
02/18/2005 9:24:39 AM PST
by
ohioWfan
(George W. Bush........AVENGER of the BONES!!)
To: ohioWfan
To: anniegetyourgun
Rush was just talking about how badly this hurts the RAT party and their fundraising and trial lawyer support.
This is absolutely delicious on several levels.
9
posted on
02/18/2005 9:27:39 AM PST
by
ohioWfan
(George W. Bush........AVENGER of the BONES!!)
To: Pyro7480
I'm not sure I understand how this will curb class-action suits. Are the federal courts automatically tougher on plaintiffs?
10
posted on
02/18/2005 9:27:50 AM PST
by
TChris
(Most people's capability for inference is severely overestimated)
To: TChris
This is only the first step.
11
posted on
02/18/2005 9:29:50 AM PST
by
Pyro7480
("All my own perception of beauty both in majesty and simplicity is founded upon Our Lady." - Tolkien)
To: Pyro7480; wardaddy; Dog Gone; Grampa Dave; SAJ; jmstein7; kristinn; Congressman Billybob; Howlin

That's beautiful! Tort reform, baby!
President Bush - First 48 Months
|
Presidency of George W. Bush -- the first 48 months |
 President Bush signing a federal ban on Partial Birth Abortion
Banned Partial Birth Abortion
Reversed Clinton's move to strike Reagan's anti-abortion Mexico Policy Stopped foreign aid that would be used to fund abortions.
Supported and upheld the ban on abortions at military hospitals
Signed E.O. reversing Clinton's policy of not requiring parental consent for abortions under the Medical Privacy Act
Killed the Kyoto Global Warming Treaty
Killed U.S. involvement in the International Criminal Court
Killed Clinton's CO2 rules that were choking off all of the electricity surplus to California
Killed Clinton's "ergonomic" rules that OSHA was about to implement; rules that would have shut down every home business in America  First Missile is Installed For NMD on July 23, 2004Killed the U.S. - CCCP ABM Treaty that was preventing the U.S. from deploying our ABM defenses Has CONSTRUCTION in process on the first ten ABM silos in Alaska and California so that America has a defense against North Korean nukes

The Commercial Space Launch Amendments Act (less romantically known as H.R. 5382) ultimately allows average Americans to hitch a ride on a civilian space craft at their own risk. The federal ban on such citizen travel was repealed by HR 5382 in 2004. The President signed that bill into law two days before Christmas. President Bush pledged to Israel on 4/14/2004 that it could keep parts of the West Bank, giving international legitimacy to Jewish settlements there Denied Palestinian refugees any right of return to what is now Israel, saying they should be resettled in a future Palestinian state instead Part of coalition (Russia, Israel, EU, Palestine, USA) for Israeli/Palestinian "Roadmap to Peace"
Pushed through THREE raises for our military
Increased Defense Dept funding which had deteriorated during the previous 8 years President Bush's Grand Strategy (click here)
President Bush's Environmental Record - 2004 (click here) Signed TWO bills into law that arm our pilots with handguns in the cockpit
Currently pushing for full immunity from lawsuits for our national gun manufacturers
Ordered Attorney-General Ashcroft to formally notify the Supreme Court that the OFFICIAL U.S. government position on the 2nd Amendment is that it supports INDIVIDUAL rights to own firearms, NOT a leftist-imagined *collective* right
Told the United Nations we weren't interested in their plans for gun control (i.e. the International Ban on Small Arms Trafficking Treaty)
Signed the 2004 Omnibus Budget 1/26/2004 that now MANDATES that gun buyers' background check information be fully and permanently destroyed within 24 hours of the completion of the check, no matter what. Repealed Gun Controls Against Active, Retired, and Off-Duty Law Enforcement Personnel Carrying Weapons Into Local and State Prohibited Zones (7/28/2004)
Enacted powerful tort reform legislation that moves many class action lawsuits from state to federal courts. Requires federal courts to hear cases where the amount of the dispute is more than $5 million, and when the defendant and any of the plaintiffs live in different states.
Disarmed Libya of its Chemical, Nuclear, and biological WMD's without bribes or bloodshed Won an agreement that U.S. Navy sailors may now freely board thousands of commercial ships in international waters to search for weapons of mass destruction under a landmark pact between the United States and Liberia, the world's No. 2 shipping registry (signed Feb 11, 2004), and Panama 5/10/2004 http://www.nytimes.com/2004/05/11/international/americas/11ship.html). Successfully executed 2 wars and rebuilt 2 nations: Afghanistan and Iraq. 50+ million people who had lived under tyrannical regimes now live in freedom...epitomized by their own free and democratic elections. 
Provided Billions in aid, machines, and manpower to tsunami victims.
Executed a WAR ON TERROR by getting world-wide cooperation to track funds/terrorists (has cut off much of the terrorist's funding and captured or killed many key leaders of the al Qaeda network) Bush Administration diplomacy led to the 5/25/2004 peace accord that ended a massive 20-year civil war between Sudan's Islamic north and Christian south after two million deaths Click Here Delivered vital emergency aid to millions of survivors on multiple continents (e.g. Africa, SE Asia) of a devastating Tsunami caused by a 9.1 earthwuake near Sumatra.
Brought back our EP-3 intel plane and crew from China without any bribes or bloodshed
Started withdrawing our troops from Bosnia and has announced withdrawal of our troops from Germany and the Korean DMZ.
Signed the LARGEST nuclear arms reduction in world history with Russia
Initiated comprehensive review of our military, which was completed just prior to 9/11/01, accurately reported that ASYMMETRICAL WARFARE was critical. Created NATO's Rapid Response Force Changed the tone in the White House, restoring HONOR and DIGNITY to the Presidency
Reorganized bureaucracy...after 9/11, condensed 20+ overlapping agencies and their intelligence sectors into one agency: the Department of Homeland Security.
Initiated discussion on privatizing Social Security and individual investment accounts.
Improving govt. efficiency with .8 million jobs put up for bid...weakening unions and cutting undeserved pay raises. Wants merit based promotions/raises only.
Orchestrated Republican control of the White House, the House AND the Senate.
Killed the liberal ABA's role in vetting federal judges for Congress.
GWB signed an executive order enforcing the Supreme Court's Beck decision (re: union dues being used for political campaigns against individual's wishes)
Turned around an inherited economy that was in recession.
Passed tough new laws to hold corporate criminals to account as a result of corporate scandals.
Signed 2 income tax cuts ---- 1 of which was the largest Dollar-value tax cut in world history
Reduced taxes on dividends and capital gains
In process of eliminating IRS marriage penalty.
Increased small business incentives to expand and to hire new people Eliminated the Estate Tax (AKA "Death Tax") that was taking small farms and businesses from families
Signed into law the No Child Left Behind legislation delivering the most dramatic education reforms in a generation (challenging the soft bigotry of low expectations)
Reorganized the INS in an attempt to safeguard the borders and ports of America and to eliminate bureaucratic redundancies and lack of accountability.
Signed trade promotion authority
Committed US funds to purchase medicine for millions of men and women and children now suffering with AIDS in Africa
Passed Medicare Reform (authorized $39.5 Billion per year for preventive medicine such as drugs and doctor visits as well as included a ten year Privatization option)
Urging federal liability reform to eliminate frivolous lawsuits
Supports class action reform bill which limits lawyer fees so that more settlement money goes to victims
Submitted comprehensive Energy Plan--awaits Congressional action (works to develop cleaner technology, produce more natural gas here at home, make America less dependent on foreign sources of energy, improve national grid, etc.)
Endorses and promotes The Responsibility Era ("In a compassionate society, people respect one another and take responsibility for the decisions they make in life. My hope is to change the culture from one that has said, if it feels good, do it; if you've got a problem, blame somebody else -- to one in which every single American understands that he or she are responsible for the decisions that you make; you're responsible for loving your children with all your heart and all your soul; you're responsible for being involved with the quality of the education of your children; you're responsible for making sure the community in which you live is safe; you're responsible for loving your neighbor, just like you would like to be loved yourself. " -----this quote was too good to leave out)
Started the USA Freedom Corps
Initiated review of all federal agencies with a goal to eliminate federal jobs (completed September 2003) in an effort to reduce the size of federal gov while increasing private sector jobs.
Challenged the United Nations to live up to their responsibilities and not become The League of Nations ( in other words, completely irrelevant)
Nominated strong, conservative judges to the judiciary.
President Bush opened up an additional part of Alaska for domestic oil drilling. In 2004, the National Petroleum Reserve, an area west of the existing Prudhoe Bay field, was approved for new energy exploration and production. Increased U.S. Oil Drilling Permits 70% Above Clinton-era Changed parts of the Forestry Management Act to allow necessary clean-up of the national forests in order to reduce fire danger.
As part of the national forests clean-up, the President restricted judicial challenges (based on the Endangered Species Act and other challenges) and removed the need for an EIS (Environmental Impact Statement) before removing fuels/logging to reduce fire danger. New Forest Rules Gives States Power Over Federal Forests Inside Their Borders Significantly eased field-testing controls of genetically engineered crops. President Bush signed the workplace verification bill to prevent hiring of illegal Aliens S. 1685, the Basic Pilot Extension Act of 2003, was signed by President Bush on December 3, 2003. It extends for five years the workplace employment eligibility authorization pilot programs created in 1996. It expands the pilot programs from the original five states to all 50 states.
|

U.S. Forces In Baghdad
12
posted on
02/18/2005 9:31:21 AM PST
by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
To: Pyro7480
This hurts in Michigan where the state courts are a lot tougher.
The good news is that this cuts down on judge shopping. The gun grabbers were suing in Brooklyn for a reason.
13
posted on
02/18/2005 9:31:29 AM PST
by
Dan from Michigan
("It's easy to hide behind a microphone, son" - Coach Mike Ditka)
To: Southack
What a beautiful addition to your beautiful list, Southack!
14
posted on
02/18/2005 9:34:47 AM PST
by
ohioWfan
(George W. Bush........AVENGER of the BONES!!)
To: MindBender26
My company is part of a class-action suit against Hewlett-Packard. If they win we get $10.00 but I know the lawyers are getting millions.
Carolyn
15
posted on
02/18/2005 9:34:48 AM PST
by
CDHart
(The world has become a lunatic asylum and the lunatics are in charge.)
To: Pyro7480
How's this to balance the budget: Seventy percent of all punitive damages (not the compensatory damages) go back into the court system or to the federal government to balance the budget.
The bad guys still get hurt, the victims still get compensated, the budget goes into the black, and the lawyers get screwed.
TS
16
posted on
02/18/2005 9:35:04 AM PST
by
Tanniker Smith
(I didn't know she was a liberal when I married her.)
To: MindBender26
I am a plaintiff in a case involving supposed overcharges by American Express. I get $3.00. The lawyers got 8 million. Screw-um. On the other hand, it's not like you did any of the work in the lawsuit to recover the overcharge.
To: TChris
"I'm not sure I understand how this will curb class-action suits. Are the federal courts automatically tougher on plaintiffs?"
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.
18
posted on
02/18/2005 9:35:51 AM PST
by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
To: ohioWfan
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.
To: SedVictaCatoni
"On the other hand, it's not like you did any of the work in the lawsuit to recover the overcharge."
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.
20
posted on
02/18/2005 9:38:45 AM PST
by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
To: ohioWfan
"Rush was just talking about how badly this hurts the RAT party and their fundraising and trial lawyer support."
It hurts them in the long run, but in the short run those trial lawyers are still just as rich and *far* more motivated against us than ever before.
But in 5 years, they'll have far less money to spend against us.
21
posted on
02/18/2005 9:41:53 AM PST
by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
To: Pyro7480
And the crack on the liberal world grows yet larger! Hoorah!
22
posted on
02/18/2005 9:42:50 AM PST
by
Fledermaus
(I Googled "Democrat+Sane" and got no hits.)
To: SedVictaCatoni
>On the other hand, it's not like you did any of the work in the lawsuit to recover the overcharge.
Exactly. Anytime one is rewarded for doing nothing, problems insue.
23
posted on
02/18/2005 9:44:09 AM PST
by
MindBender26
(Having your own XM177 E2 means never having to say you are sorry......)
To: Pyro7480
The Dems are still howling about the "Serious Election Irregularities" in 2004. Seems like this bill would have casued more howling from the crowd that deigns personal responsibility.
I haven't heard them moan a peep about this - which makes me think it won't amount to much..
24
posted on
02/18/2005 9:46:48 AM PST
by
IamConservative
(To worry is to misuse your imagination.)
To: Southack
Nobody will see lower prices or charges for services because of this Bill. As much as I applaud President Bush and the Congress for getting this bill passed and signed, we will all continue to pay more for goods and services.
If we do, please feel free to remind me that I was wrong.
25
posted on
02/18/2005 9:46:51 AM PST
by
southlake_hoosier
(.... One Nation, Under God.......)
To: ohioWfan
Rush was just talking about how badly this hurts the RAT party and their fundraising and trial lawyer support. This is absolutely delicious on several levels. How does this hurt Dimms among lawyers??
To: ohioWfan
Glad I live in a BIG RED State!
27
posted on
02/18/2005 9:57:39 AM PST
by
MeekOneGOP
(There is only one GOOD 'RAT: one that has been voted OUT of POWER !! Straight ticket GOP!)
To: Pyro7480
It's really too bad that they quoted an opponent (from what might be called a 'special-interest group')as to why this is bad -- but the administration doesn't bother to tell us why it is good. (Either that, or the 'reporter' didn't bother to tell us so.) This is a VERY important development.
To: Pyro7480
What was wrong with a justified lawsuit settlement of say $4000000.23
The $40000000.00 goes to the lawyers and the .023 cents goes to the victim.
This will put a major crimp in DNC funding, gotta love it!
29
posted on
02/18/2005 10:02:18 AM PST
by
TheForceOfOne
(Social Security – I thought pyramid schemes were illegal!)
To: TChris
I'm not sure I understand how this will curb class-action suits. Are the federal courts automatically tougher on plaintiffs? Yes....I heard Rush say that the states are MUCH more generous in awards.
30
posted on
02/18/2005 10:03:55 AM PST
by
Torties
To: Southack
I think the next 48 month list is going to be longer and even better, but I always appreciate you reminding us of why we re-elected Dubya.
31
posted on
02/18/2005 10:12:19 AM PST
by
Once-Ler
(Beating a dead horse for NeoCon America)
To: SedVictaCatoni
"I am a plaintiff in a case involving supposed overcharges by American Express. I get $3.00. The lawyers got 8 million. Screw-um."
"On the other hand, it's not like you did any of the work in the lawsuit to recover the overcharge."
If the "award" to the plaintiffs was going to be that paltry then why bother? The point is that the looting lawyers couldn't care less about the plaintiffs, they are just a necessary evil as far as they are concerned. The lawyers just raised phone rates for everyone.
These cases are random, and it is more about who has deep pockets than who did anything wrong. Businesses call it "the cost of doing business" and simply charge consumers more to cover it. The only incentive that is created for business is to do business elsewhere, and that means more jobs leaving the country. The lawyers get rich and are ultimately paid by the consumers they are so piously claiming to protect. No wonder they are the heros of the Democrats: they screw every body and get rich in the process.
32
posted on
02/18/2005 10:19:06 AM PST
by
WmDonovan
(http://www.geocities.com/thelawndaletimes)
To: ohioWfan
Don't you love watching critics from either side silenced? LOL
Feels nice to win a domestic battle so early.
To: stopem
No, it means they'll be heard in Federal Court. It's easier to put a cap or some kind of restraint on Federal suits than state. It's a small win but a win none the less.
34
posted on
02/18/2005 10:33:33 AM PST
by
BJClinton
(Kinky Friedman for Governor: Why the hell not?)
To: Pyro7480
Some of the class-action lawyers become so rich that they buy mansions in gated communities where you and I are not allowed. At the same time, some companies which they sued have had to lay off workers and cut back on production, which means less people working and paying taxes. It hurts us all.
35
posted on
02/18/2005 10:57:56 AM PST
by
kitkat
(Our Founding Fathers are PROUD of Pres. George W. Bush)
To: WmDonovan
If the "award" to the plaintiffs was going to be that paltry then why bother? To make a long story short: they don't necessarily know how many plaintiffs there are or how much they were injured when the suit was initially filed. That is discovered over the course of the litigation, so by the end they divide up Y dollars amongst X plaintiffs, and it ends up being $3.00 or $300 or $30,000 apiece. Anybody who has a claim which they know to be more than paltry is welcome to opt out of a class action and file their own independent lawsuit.
In addition, even if a large company harms a million people for $5 apiece, they have still committed legally recognizable harm to the amount of $5,000,000. If lawyers bring a class action lawsuit, do all the work, put up (almost) all the fees and expenses, and collect a reasonable fee of 25%, they end up with $1,250,000.
That sounds like a pile of money, but, on the other hand, it's a fee of $1.25 apiece for a million clients, each of whom they managed to recover funds for. The company lost what it stole in the first place; the customers managed to get a refund (which they would not have been otherwise able to get) minus a reasonable attorney's fee; the attorneys were compensated for the labor and risk.
Many class-action lawsuits are justified; many are ill-founded or ridiculous. Continuing reform of this powerful legal tool is an excellent idea; moving more class actions to federal court is a good start.
To: kitkat
Some of the class-action lawyers become so rich that they buy mansions in gated communities where you and I are not allowed. All else aside, class warfare rhetoric like "X is so rich that he lives in a gated community where you and I are not allowed" is silly.
Many Freepers buy things called "their houses" where you and I are not allowed. The rich don't get to have private property too?
To: Pyro7480
LOL, I just had a lawyer in my office whining about this! He was going on and on about how the drug companies won't care who they hurt and kill with poorly researched drugs now because they don't have to worry about big lawsuits. They can blame their own greed for this bill.
38
posted on
02/18/2005 11:44:36 AM PST
by
Reagan is King
(The modern definition of 'racist' is someone who is winning an argument with a liberal.)
To: Right_in_Virginia
It takes money away from the funding of the Dems. It's a beautiful thing!
39
posted on
02/18/2005 12:20:14 PM PST
by
ohioWfan
(George W. Bush........AVENGER of the BONES!!)
To: Soul Seeker
Yes it does! Early in the second term, but 10 years in the making.
A BIG little step in tort reform.
40
posted on
02/18/2005 12:21:27 PM PST
by
ohioWfan
(George W. Bush........AVENGER of the BONES!!)
To: Southack
Hurting them in the long run works for me. :o)
41
posted on
02/18/2005 12:22:36 PM PST
by
ohioWfan
(George W. Bush........AVENGER of the BONES!!)
To: ohioWfan
Thanks to you guys and gals from my home state...
OHIO....Bush again fulfilling a promise....Love it..
Wonder where pretty boy...Edwards is now??? He
is probably in denial...Jake
To: Pyro7480
This really is a good piece of legislation. It finally brings the law more into line with the primary purpose of the provision for federal "diversity" jurisdiction (i.e., federal court jurisdiction of suits between citizens of different states) provided by the Constitution.
One of the real reasons the plaintiffs' lawyers are p.o.'d is that the legislation also limits their fees in so-called "coupon" settlements to a percentage of the coupons actually redeemed.
In other words, if a lawyer brings a class action against Acme Puppy Chow for allegedly false claims as to the benefits of the product and then negotiates a settlement whereby ten million customers get a coupon for $5 off their next Puppy Chow purchase, the lawyer's fee is now calculated based on the coupons actually redeemed, rather than those just sent out. Often only a small percentage, say 10%, of members of the plaintiff class actually redeem the coupons. In the Puppy Chow case, this means only $5 million is ever paid to the class. However, under the old rule, the attorney's fees would often be calculated on the $50 million "value" of the total number of issued coupons. Assuming a fee of 25%, the attorney under the old practice would have gotten $12.5 million (25% of $50 million -- the total value of the coupons issued). Under the new law, the lawyer's fee is now calculated based on what is actually paid out (or projected to be paid out)--in our scenario, he gets 25% of $5 million, or $1.25 million.
Not chump change, but not enough to support a private jet (which is the defining toy for these guys).
The statement of purpose of the law is set forth below in case anyone is interested.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS- Congress finds the following:
(1) Class action lawsuits are an important and valuable part of the legal system when they permit the fair and efficient resolution of legitimate claims of numerous parties by allowing the claims to be aggregated into a single action against a defendant that has allegedly caused harm.
(2) Over the past decade, there have been abuses of the class action device that have--
(A) harmed class members with legitimate claims and defendants that have acted responsibly;
(B) adversely affected interstate commerce; and
(C) undermined public respect for our judicial system.
(3) Class members often receive little or no benefit from class actions, and are sometimes harmed, such as where--
(A) counsel are awarded large fees, while leaving class members with coupons or other awards of little or no value;
(B) unjustified awards are made to certain plaintiffs at the expense of other class members; and
(C) confusing notices are published that prevent class members from being able to fully understand and effectively exercise their rights.
(4) Abuses in class actions undermine the national judicial system, the free flow of interstate commerce, and the concept of diversity jurisdiction as intended by the framers of the United States Constitution, in that State and local courts are--
(A) keeping cases of national importance out of Federal court;
(B) sometimes acting in ways that demonstrate bias against out-of-State defendants; and
(C) making judgments that impose their view of the law on other States and bind the rights of the residents of those States.
(b) PURPOSES- The purposes of this Act are to--
(1) assure fair and prompt recoveries for class members with legitimate claims;
(2) restore the intent of the framers of the United States Constitution by providing for Federal court consideration of interstate cases of national importance under diversity jurisdiction; and
(3) benefit society by encouraging innovation and lowering consumer prices.
43
posted on
02/18/2005 1:47:51 PM PST
by
mondonico
(Peace through Superior Firepower)
To: Reagan is King
"LOL, I just had a lawyer in my office whining about this! He was going on and on about how the drug companies won't care who they hurt and kill with poorly researched drugs now because they don't have to worry about big lawsuits. They can blame their own greed for this bill."
If lawyers have such compassion for people injured by Doctors and Drug Companies, and are so brilliant at discovering what exactly they did that was so grievously and so obviously wrong then here is an idea: become a Doctor. That way they could prevent all these horrible mistakes and negligence in the first place. I mean, they find all these things wrong with Doctors with such ease, can't they do a better job? Oh, wait, that would actually involve work; besides when was the last time treating one patient put several millions dollars into a Doctor's pocket?
Just wish that there could be a class action suit against the tort industry as a whole, for lost jobs, higher prices, deaths (trained medical professionals are told not to stop at accidents to stay out of court), cold coffee, and for making life that much more nasty, brutish, and short.
44
posted on
02/18/2005 2:00:28 PM PST
by
WmDonovan
(http://www.geocities.com/thelawndaletimes)
To: SedVictaCatoni
"If the "award" to the plaintiffs was going to be that paltry then why bother?"
"To make a long story short: they don't necessarily know how many plaintiffs there are or how much they were injured when the suit was initially filed."
If the tort lawyers are just doing it for "the little guys" can't they fork over some of their fee to those little guys? You know, in addition to the 32 cent coupons, toss in a couple of million from their fee and still go home rich? Oh, thats right, they aren't in it for the little guy. They are in it to get rich by looting where ever there is an excuse.
The point is that companies have come to expect this sort of nonsense and count it as the cost of doing business. When a case starts up they start building a reserve from higher prices passed onto consumers. Eventually they may elect to move the business overseas altogether or just close up shop. As it is mostly random I don't see it effecting the behavior of any company, indeed, in some cases the behavior of the company had nothing whatsoever to do with it. It is simply a lawyer subsidy tax on the public at large.
Here is a question to ponder: why do states and the federal government subsidize the education of law school students? Does society really benefit from more lawyers? It seems like there is a certain amount of honest work out there, but after that devilry is resorted to. It would be like trying to clone Pauly Shore: one is plenty already, two would just cause problems.
45
posted on
02/18/2005 2:29:31 PM PST
by
WmDonovan
(http://www.geocities.com/thelawndaletimes)
To: WmDonovan
Well said! They purport to be helping the little guy but they only line their own pockets with millions while the real injured parties get pennies. They probably get a big laugh out of bankrupting some of these smaller companies and putting people out of work with these ridiculous suits in the name of "protecting the consumer".
I didn't think I'd live to see the day that they actually got something accomplished on beating the lawyer lobby and stopping this lawsuit abuse but kudos to Congress and the Prez for getting this done.
46
posted on
02/18/2005 2:35:05 PM PST
by
Reagan is King
(The modern definition of 'racist' is someone who is winning an argument with a liberal.)
To: sanjacjake
More likely Edwards is in mourning. :o)
And you're welcome from your home state.
We knew that we were at the heart of it all in this election, and the attitude and spirit among the thousands (25, I think) of volunteers was overwhelming.
The Kerry campaign admittedly didn't know what hit them.
We saved the nation!
47
posted on
02/18/2005 2:45:48 PM PST
by
ohioWfan
(George W. Bush........AVENGER of the BONES!!)
To: WmDonovan
If the tort lawyers are just doing it for "the little guys" can't they fork over some of their fee to those little guys? You know, in addition to the 32 cent coupons, toss in a couple of million from their fee and still go home rich? Referring to my example: If the lawyers "refunded" a million dollars from their fee to the million plaintiffs, they'd get an extra dollar apiece. Er... okay.
The point is that companies have come to expect this sort of nonsense and count it as the cost of doing business.
As I mentioned in the post to which you replied, many of these cases are nonsense, and many are quite justified. If you found out that the electric company had been intentionally overbilling you for the last ten years, would you think that was a trivial matter, or that they shouldn't be held accountable for it? Do you think that they'd be likely to continue with the practice if they got smacked with a class-action lawsuit?
As it is mostly random I don't see it effecting the behavior of any company, indeed, in some cases the behavior of the company had nothing whatsoever to do with it.
Are you familiar with many class-action lawsuits? Numerous defective or dangerous products have been discontinued, and numerous efforts at price-fixing or fraud have been stopped by means of the class-action lawsuit. That is its place in American law - to permit a sort of citizens' mob to act as a private attorney general to go after a powerful wrongdoer.
This powerful tool is, like any, often abused, which is why the reforms referred to in this article are a good idea.
Here is a question to ponder: why do states and the federal government subsidize the education of law school students?
I'm not sure what you're talking about here. Some state universities have law schools, just like they have schools of engineering, journalism, and veterinary medicine; the tuition is similar to any other graduate program, so students are not really "subsidized". Most law schools are private institutions, of course.
Does society really benefit from more lawyers?
Not really. However, probably the majority of law school graduates can't find jobs as lawyers. They end up doing something else anyway.
To: ohioWfan
It takes money away from the funding of the Dems. It's a beautiful thing! It sure brings a smile to this face ;^)
To: pissant
Congress can pass a bill protecting businesses and manufacturers from lawsuits arising from injury or death due to criminal misuse or negligent behavior by the consumer of ALL non-defective products including guns, cars, alcohol, baseball bats, power saws, etc.
50
posted on
02/18/2005 5:37:27 PM PST
by
Blood of Tyrants
(God is not a Republican. But Satan is definitely a Democrat.)
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