In mid-February, the United States Senate passed the Class Action Fairness Act, S 5, by a vote of 72 to 26. The measure calls for moving many class-action lawsuits from state courts to federal courts when the amount in dispute exceeds $5 million and when the defendant and the plaintiff live in different states.
Insurance trade groups called the bill's passage long overdue. “This legislation represents a critical step toward reforming our nation's legal system and is a major achievement for RIMS' legislative agenda,” said Janice Ochenkowski, vice president, external affairs, for the Risk and Insurance Management Society.
“We are very pleased that the senate has come together on a class-action bill that will help curb frivolous lawsuits and provide consistency in these types of legal cases,” said Charles Symington Jr., senior vice president of federal government affairs for the Independent Insurance Agents and Brokers of America.
The bill was proposed in the 108th Congress but failed due to unrelated amendments. No major changes are expected from the House of Representatives when they receive the bill. House leaders have said that they intend to move quickly on the bill.
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