House passes class-action reform bill.

Chemical Market Reporter, June, 2003 by Hess, Glenn

THE HOUSE of Representatives has passed legal reform legislation that industry officials say would curb abuse of the class-action system by shifting nationwide, multimillion dollar lawsuits from state to federal courts. The bill, passed 253-170, provides for class actions involving at least 100 people to be removed from state courts and sent to federal courts when at least $5 million is at stake and fewer than one-third of the plaintiffs are from the same state as the primary defendant.

Supporters say the legislation is needed to prevent trial lawyers from forum shopping for sympathetic venues and judges known for multimillion dollar verdicts, forcing businesses into unjustified settlements. Regulating only matters of procedure, they maintain the...

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