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Class-action bar revived

Class-action bar revived

Declared dead in the U.S. Senate less than two months ago, a bill that would funnel most class-action lawsuits into federal courts is being brought back to life with a bit of classic political resuscitation.

The misleadingly titled “Class Action Fairness Act” should have been allowed to expire quietly.

Acting as emergency medical technicians in this case are three senators who reportedly have agreed to switch their votes. The bill was blocked by one vote on a motion to end a Democratic filibuster on Oct. 22.

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The legislation, eagerly sought by the business community as protection against lawsuits, would generally require that class actions filed in state courts be moved to federal courts.

As we ve said before, we favor tort reform to limit the number of frivolous lawsuits that clog the courts. But this proposal goes too far in applying retroactively to legal action already under way.

Ex post facto laws are prohibited under the Constitution, and the shift to federal courts would unnecessarily delay a number of pending class-action cases, possibly allowing some of the defendants in the huge Enron fraud off the hook.

The major change in the revived bill is some vague language that provides fig-leaf protection for the vote-switchers and the special-interest groups pressuring them: Democratic Sens. Christopher Dodd, of Connecticut (insurance); Mary Landrieux, of Louisiana (oil), and Charles Schumer, of New York (banks).

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Most of the support comes from business-friendly Republicans, but its opponents include major organizations representing federal and state judges, plus state attorneys general.

This is hardly a group of wild-eyed liberals.

No good rationale has been provided for the measure, which undoubtedly was written by the U.S. Chamber of Commerce.

Rather than genuine tort reform, which is badly needed, this bill appears to be another vehicle for virtual legal immunity for the business community.

The Senate should put it back in the legislative casket and screw on the lid, but tighter this time.

First Published December 16, 2003, 11:47 a.m.

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