The legislation would move to federal court class action lawsuits that are for more than $5 million in damages and that involve defendants or plaintiffs who live in multiple states.
“As an association that represents the entire spectrum of the housing industry — from small and high production builders to manufacturers of component products — NAHB believes these provisions will discourage ‘forum shopping,’ an abusive practice in which attorneys seek out certain state courts that have a history of biased judgments against defendants in class action suits.
“This has reached a point where defendants will settle cases, even those without merit, rather than risk trial in state court. This bill will protect defendants from undue pressure to settle and ensure protection for plaintiffs,” said Wilson.
To read the legislation, click here and type S. 5 in the box at the upper left.
For more information, e-mail Michael Strauss at NAHB, or call him at 800-368-5242 x8252.
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