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Class Action News
House Approves Class Action Suit Reform
WASHINGTON - The House of Representatives today voted to pass S. 5, the "Class Action Fairness Act of 2005." Congressman Wally Herger supported the bipartisan measure for passage, saying that class action and broader lawsuit abuse reform are important for economic vitality and job creation. The legislation specifically reforms current law related to class action lawsuits, allowing such suits to be removed to federal courts, and reducing the potential for abuse of settlement awards by attorneys. The bill, approved by a 279 to 149 margin, now goes to President Bush to be signed into law.
"The huge increase in litigation costs in recent years is staggering. In 2003, our tort system cost an astonishing $246 billion. This represents a drag on our nation’s economy, dragging down small business expansion and depressing job growth. Clearly, the current legal system is broken.
"This common sense reform streamlines our court system and prevents settlements from giving trial lawyers millions of dollars, while the plaintiffs are left with worthless coupons.
"As part of broader legal reforms, the class action bill passed today is an important step in reducing abusive lawsuits. The bill will provide greater protections for the victims whom the class action device originally was designed to benefit, and will at the same time decrease the excessive burden of class action lawsuits on our economy.
"President Bush said in his State of the Union Address that Congress must work to make our economy stronger and more competitive. We can do this by freeing small businesses and entrepreneurs from junk lawsuits and irresponsible class actions. I look forward to continuing to support further efforts to curb lawsuit abuse this Congress through sensible medical liability and other reforms."
A class action lawsuit was filed against AT&T for invading the privacy of its customers.
The Electronic Frontier Foundation (EFF) filed a class-action lawsuit against AT&T on January 31, 2006, accusing the telecom giant of violating the law and the privacy of its customers by collaborating with the National Security Agency (NSA) in its massive and illegal program to wiretap and data-mine Americans' communications.
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Definition:
A collusion entails an informal agreement between plaintiff and defendant.
Declaratory judgment class
Definition:
Declaratory judgment class is an action where the court is asked to declare the rights and obligations of the respective parties.
Clear sailing agreement
Definition:
An agreement made between counsel for plaintiffs and defendants during or after a settlement negotiations on the claims of a class whereby the defendant agrees not to object to a fee request of the counsel representing the plaintiff class.
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