The legislation will move class action lawsuits into federal court when the total amount in dispute exceeds $5 million, and when any plaintiff and the defendant live in different states.
“Because class action cases usually are heard in sympathetic state courts, defendants who are fearful of losing the case and facing potentially large damage awards are likely to settle out of court rather than risk a trial. This means that most class action cases are usually settled before a court even hears the merits of the case,” said Wilson.
“This legislation resolves this problem by shifting class action cases to federal courts, which tend to be more objective in their decisions than state courts,” he added, noting that the measure protects defendants from undue pressure to settle while providing proper safeguards for plaintiffs.
To read the legislation, click here, and enter 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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