Chamber Blasts Delay on Class Action Reforms

WASHINGTON, D.C. – The United States Chamber of Commerce blasted today's action by 39 lawmakers to delay Senate debate on legislation to reform the state court class action system as political gamesmanship.

"Today's vote shows lawmakers can use procedural rules to subvert the will of a clear majority of Senators," said Thomas Donohue, Chamber President and CEO. "Those Senators who voted for party politics over bipartisan, common sense reforms have cast a vote against American consumers and class members.

"Based on the remarks made by a number of Senators after today's vote, however, we do remain encouraged about the prospects for the Senate passing class action reform this year. We intend to work quickly to try and address the concerns raised by a number of Senators on the floor after today's vote," said Donohue.

The Class Action Fairness reforms – already passed by the House – expand the jurisdiction of federal courts, allowing them to more easily hear national class action lawsuits. This would ensure that large and complex class actions, involving plaintiffs and defendants from around the country, could be heard in federal courts.

"This is a missed opportunity to get rid of an anchor dragging on our economic growth," said Donohue. "The current system of rampant venue shopping and abusive settlements costs every American $721 each and every year."

Since 1997, the Chamber's Institute for Legal Reform has been working vigorously to urge congressional passage of the Class Action Fairness Act. A recent poll conducted for the Institute for Legal Reform found that 74 percent of Americans believe the current system drives up prices and should be restrained. Seventy-seven percent of those polled agree that class action lawsuits should be tried in federal courts instead of state courts.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region. The mission of the U.S. Chamber Institute for Legal Reform is to make America's legal system simpler, fairer and faster for everyone.

###

03-158