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Class-Action Limitation Bill Fails on Senate Floor

By ALM Staff | Law Journal Newsletters |
July 29, 2004

On a procedural vote on July 8, the U.S. Senate declined to move forward a bill that would have limited the use of class-action lawsuits. Although the Class Action Fairness Act reportedly had the support of at least the 60 Senators needed to take up the bill, efforts by some to attach unrelated provisions to it led to its doom.

The Class Action Fairness Act would have authorized federal courts to hear such suits if they involved more than 100 plaintiffs and more than $5 million in damages, and only those suits in which the plaintiffs and companies were from different states. Under the terms of the bill, attorney fees would be greatly reduced in cases in which plaintiffs receive coupons redeemable for merchandise in a settlement of their claims because those fees would be based on the coupons actually redeemed, not those authorized or issued.

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