Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • HUMANITARIAN
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
April 12, 2002 02:00 AM

U.S. House approves class action reform bill

Miles Moore
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    WASHINGTON (April 12, 2002)—A bill to reform the U.S. class action system has passed the House, but tire industry representatives are less certain the legislation can get safely through the Senate.

    “The Class Action Fairness Act of 2002 will ensure that frivolous lawsuits will no longer find refuge in state courts,” said Donald B. Shea, president of the Rubber Manufacturers Association, in an April 2 letter to Senate Majority Leader Tom Daschle, D-S.D.

    The brainchild of two Virginia congressmen, Republican Bob Goodlatte and Democrat Rick Boucher, the Class Action Fairness Act would move national class action lawsuits into federal courts and limit the share of jury awards that plaintiffs' attorneys could claim. State-by-state inequities in class action rules, according to the bill's supporters, encourage “venue-shopping” on the part of lawyers.

    “The trial lawyers of class-action lawsuits know which state courts and jurisdictions will tilt the level playing field in favor of their clients,” Mr. Shea wrote. “However, their clients do not receive the bulk of any award. The lawyers often wind up with millions of dollars while those who allegedly needed the relief get little more than coupons.”

    The bill establishes a consumer class-action bill of rights, including judicial review of non-cash settlements, protection against loss by class members because of payments to class counsel and prohibition of higher payments to plaintiffs who live closer to the court.

    Other tire associations also have spoken in support of the Class Action Fairness Act. A new lawsuit is filed every two seconds in the U.S., and class actions in state courts have increased more than 1,000 percent in the last decade, noted Becky MacDicken, director of government affairs for the Tire Association of North America.

    The bill passed the House in the last Congress, and passed again March 13 on a 233-190 vote. The House approved amendments to sharply limit the sealing of court orders, opinions or records; require the disclosure of attorneys' fees in a class action judgment or settlement; and order the Judicial Conference of the U.S. to prepare a report on class action settlements in federal courts.

    However, the industry has predicted all along that the legislation will be a tough sell in the Democrat-controlled Senate. The bill was assigned March 14 to the Senate Judiciary Committee, but no action has yet been taken.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Icahn-owned Auto Plus files for Chapter 11 protection
    2
    Truck sector leads U.S. tire market; consumer down
    3
    Goodyear to trim jobs amid 'uncertain' economic outlook
    4
    SEMA urges USTR to end section 301 tariffs on Chinese goods
    5
    Gills Point S acquires Hogan Tires of Maine
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • HUMANITARIAN
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION