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Senate Ready to Consider Class Action Tort Reform This Week

The bill would make it easier to shift class action lawsuits from state courts into federal courts in cases seeking more than $5 million in damages and where many of the parties involved are in different states. In interstate class action cases, the plaintiff or defendant could have the case removed to federal court.

On Feb. 3, the Senate Judiciary Committee approved S. 5, without amendments, by a vote of 13 to 5. Senators Charles Schumer (D-N.Y.), Herbert Kohl (D-Wis.), and Dianne Feinstein (D-Calif.) joined all 10 Republicans on the panel in approving the bill.

Prior to the panel vote, NAHB sent a letter to the full committee supporting the bill and opposing any amendments.

The identical measure stalled on the Senate floor last July when lawmakers attempted to attach several contentious and unrelated riders to the bill.

S. 5 will be considered in the full Senate this week. If the Senate approves a “clean” bill without amendments, the House Republican leadership has indicated it will pass the Senate bill rather than its own version of class action legislation (H.R. 516) and send the measure immediately to the President.

NAHB continues to urge senators to oppose any amendments to S. 5 that would endanger the compromise with House lawmakers and delay this legislation. The bill represents a key vote for the association when it reviews the voting records of members of Congress.

To view the bills, click here and type S. 5 or H.R. 516 in the box in the upper left hand corner. For more information, e-mail J.P. Delmore at NAHB, or call him at 800-368-5242 x8470.

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