Class Action Reform Bill Derailed

But Rachel Weintraub, assistant general counsel for the Consumer Federation of America, says S. 1751 would make it more difficult for consumers harmed by marketplace fraud to obtain effective and efficient judicial relief.

"Congress should seek to hold negligent wrongdoers accountable for their actions, not offer the special interests more protection," she says.

Under S. 1751, federal courts would have jurisdiction in most major, national class-action lawsuits.

In addition, the legislation would create a class-action bill of rights to protect the interests of class members. For example, S. 1751 would mandate clear notice to individuals that they are members of the class.

In addition, it would also protect class members against financial loss based on the fees charged by the classs attorneys.

During Senate consideration of S. 1751 last week, supporters of the legislation fell one vote short of the 60 needed to invoke cloture, which would limit debate on S. 1751 and prevent opponents from filibustering it.

The final vote was 59 for cloture and 39 against. S. 1751 is unlikely to come to the floor again unless one more vote in favor of cloture can be found.

Reproduced from National Underwriter Life & Health/Financial Services Edition, October 24, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.