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Class Action Fairness Decimation Act of 2005 Passes Swiftly

The Class Action Fairness Act of 2005 moved through the Senate in just two weeks. Introduced on January 25, 2005, it was on the full Senate floor by February 7. It passed without amendment on February 10. The Chamber of Commerce is giddy. Full text of the passed bill can be seen here.

Why is this bill so bad? Senator Reid said it best. In his remarks, set forth in full at this link, he noted several circumstances in which cases would actually be thrown out of federal court on the ground that they involve too many issues of state law. Then, when the plaintiffs try to pursue their claim in state court, they will be unable to do so because only the federal court has jurisdiction. In other words, the worse the violation of state law, the easier it becomes for the corporation to avoid liability entirely!

Is this bill really about protecting working Americans and small businesses? As the saying goes: "Follow the money." This bill is about protecting the largest companies from liability for the most egregious acts against the largest number of individuals -- consumers and employees -- who have no viable recourse other than class action litigation. Who supported the senators who supported this bill? Check it out:

Goldman Sachs: $568,910
$281,590 to Sen. Charles Schumer [D-NY]
$22,250 to Sen. John Sununu [R-NH]
$38,750 to Sen. Joseph Lieberman [D-CT]
$19,000 to Sen. Blanche Lincoln [D-AR]
$90,320 to Sen. John McCain [R-AZ]
$70,000 to Sen. Christopher Dodd [D-CT]
$23,000 to Sen. Lamar Alexander [R-TN]
$24,000 to Sen. John Cornyn [R-TX]

MBNA Corp: $526,497
$34,500 to Sen. George Allen [R-VA]
$29,000 to Sen. Jon Kyl [R-AZ]
$129,447 to Sen. Thomas Carper [D-DE]
$52,800 to Sen. Michael DeWine [R-OH]
$164,750 to Sen. Olympia Snowe [R-ME]
$86,750 to Sen. Susan Collins [R-ME]
$29,250 to Sen. George Voinovich [R-OH]

Citigroup Inc: $520,790
$16,750 to Sen. John Sununu [R-NH]
$79,000 to Sen. Joseph Lieberman [D-CT]
$17,250 to Sen. Trent Lott [R-MS]
$92,750 to Sen. Christopher Dodd [D-CT]
$12,750 to Sen. Mel Martinez [R-FL]
$19,740 to Sen. Richard Santorum [R-PA]
$241,100 to Sen. Charles Schumer [D-NY]
$41,450 to Sen. John McCain [R-AZ]

Bear Stearns: $322,550
$26,000 to Sen. Richard Santorum [R-PA]
$122,400 to Sen. Christopher Dodd [D-CT]
$16,000 to Sen. Charles Grassley [R-IA]
$140,400 to Sen. Charles Schumer [D-NY]
$17,750 to Sen. Orrin Hatch [R-UT]

Do those firms have the financial ability to fight back against the so-called frivolous lawsuits that this bill purports to oppose? Of course. Two million dollars will beat a lot of frivolous lawsuits, and the lawyers who bring them, into oblivion. As it turns out, two million dollars can also help minimize the risk that a meritorious lawsuit will let these financial firms' victims find justice.

“The Senate has taken a critical step toward granting families, consumers and employers relief from the heavy burden of lawsuit abuse,” said Thomas Donohue, Chamber President and CEO of the U.S. Chamber Institute for Legal Reform . “Now it’s time for the House to finish the job and take back our civil justice system from plaintiffs’ lawyers seeking jackpot justice.”

Is class action litigation really about “jackpot justice?” It is this time. And Bear Stearns, Goldman Sachs, MBNA, Citigroup and every tortfeasing consumer cheater and labor law breaking employer just hit the jackpot.

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