Senators Introduce Class-Action Reform Bill

“Right now,” Kohl adds, “people across the country can be dragged into class-action lawsuits unaware of their rights and unarmed on the legal battlefield.”

The class-action bill would permit class actions, which normally are heard in state courts, to be heard in federal courts if total damages exceed $2 million and the parties include citizens from more than one state.

Advocates of class-action legal reform say a move toward federal jurisdiction is necessary because some state courts are biased against defendants. In some instances, reform advocates say, federal court jurisdiction is necessary to ensure fairness.

In addition, the class-action bill calls for judicial scrutiny of settlements to assure fairness to plaintiffs, and “plain English” notification to plaintiffs of the fact the class action has been filed and of any proposed settlements.

Jack Dolan, a representative of the American Council of Life Insurers, Washington, praises the bill, saying that common sense needs to be restored to the civil justice system.

“This bill moves in the right direction,” Dolan says.