Class-action reform passed at last, but impact may be limited: house joins Senate in backing bill, but analysts doubt new law will be a panacea.(Now What?)

National Underwriter Property & Casualty-Risk & Benefits Management, February, 2005 by Postal, Arthur D.

You COULDN'T BLAME the insurance industry for wanting to strike up the band and start a parade to herald the long-awaited passage of federal legislation to reform class-action litigation. However, a celebration might be premature. It is undoubtedly a relief for supporters that the bill was finally approved in the House last week by a vote of 279-149, following Senate passage the week before.

It is also certain to be signed into law by its prime backer, President George W. Bush, at a festive White House ceremony, and hailed as a triumph for the Republicans in the White House and Congress, as well as their insurance industry and risk management allies in the private sector. But the jury is still out as to the law's likely impact on litigation costs. Indeed,...

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