House Clamps Down on Class-Action Lawsuits

The House of Representatives passed a bill on September 23 that would make it far more difficult for aggreived citizens to file class-action lawsuits against large corporations. If approved by the Senate and President, the legislation would make irresponsible companies virtually immune from lawsuits such as the recent anti-tobacco and anti-gun claims that have significantly reigned in corporate abuses.The bill, H.R. 1875, would force state court judges to transfer most of their class-action suits to Federal courts. Federal judges are much less sympathetic to plantiffs of class-action lawsuits, often outright refusing to entertain their claims. Furthermore, a massive shortage of Federal judges -- 64 Federal benches remain unoccupied -- has created a drastic case overload for the Federal courts. So even class-action suits that get on the docket would face crippling delays and red tape.Supporters of H.R. 1875 say that the bill would prevent class-action lawyers from filing suits in states whose judges and juries are predisposed to favor citizens over businesses. Opponents call the bill a "backdoor immunity" for cigarette companies, gun makers and other industries that have paid out billions in recent class-action settlements."[H.R. 1875] represents a sealed, locked, closed and forever impenetrable door to justice," said Rep. Sheila Jackson-Lee (D-Texas), one of 207 Representatives who voted against the bill, versus 222 who voted for it.Not surprisingly, a number of large corporations spent millions lobbying in support of H.R. 1875. A study by consumer advocate group Public Citizen estimates that corporations such as Phillip Morris, General Motors, Pfizer and Bank of America have pumped over $85 million into pro-H.R. 1875 campaign contributions and lobbying efforts over the past five years."Though it didn't pass by much, the reason H.R. 1875 made it through the House was because big business can afford more influence than advocacy groups," said Frank Clemente, Director of Public Citizen's Congress Watch program. "Luckily, a strong coalition is putting up resistance to this legislation."Opponents of the bill include Chief Justice William H. Rehnquist, the Conference of Chief Justices of state courts, and a vast coalition of health, civil rights, labor, consumer, gun control and anti-tobacco organizations. Because of their outcry against H.R. 1875, President Clinton has vowed to veto the legislation if it passes in the Senate."In a free-market system increasingly dominated by large corporations, the class-action device is an essential tool to tame harmful corporate behavior," said Clemente. "It is perilous for Congress to tamper with a system that has served consumers so well."