Class Action Reform - Will You Be Affected?
April 4, 2005
On February 18, 2005, President Bush signed the “Class Action Fairness Act of 2005” (CAFA) into law. This law allows defendants to remove most class action lawsuits, filed after February 18, 2005, from state to federal court, a venue where many class action defendants believe they will receive protection from what many believe are unpredictable state courts and runaway jury verdicts. Class action lawsuits have a long history in the United States. As early as the 1850’s, the United States Supreme Court intimated that American courts should allow a representative to sue or be sued on behalf of similarly situated individuals. Policy justification for allowing class actions is premised on the belief that joining similarly situated individuals promotes efficient use of the courts by having one large lawsuit rather than numerous small cases, by ensuring that compensation is distributed among all similarly injured parties, and by encouraging private individuals to challenge socially unacceptable conduct, which, but for class actions, might otherwise go unpunished. For the past decade, business, insurance, and manufacturing interests, have grown increasing fearful of large jury verdicts and the uncertainty of litigation in state courts. As a result...
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by: Mark A. Tanner
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