Senate OKs changes for lawsuits Snowe says measure will help curb abuses

WASHINGTON – The Senate approved a measure to help shield businesses from major class action lawsuits on Thursday, giving President Bush the first legislative victory of his second term.

Under the legislation, long sought by big business, large multistate class action lawsuits like the ones that have been brought against tobacco companies could no longer be heard in small state courts. Such courts have handed out multimillion-dollar verdicts.

Instead, the cases would be heard by federal judges, who have not proven as open to those type of lawsuits.

The Senate passed the bill 72-26, prompting praise from Sen. Olympia Snowe, an original co-sponsor. Fellow Maine Republican Sen. Susan Collins also voted with the majority to pass the bill, which is expected to go to the House next week before going to President Bush for his signature.

“Class actions play a vital role in our legal system, but abuse of the litigation process is a drain on our legal system and our economy,” Snowe said. “Frivolous claims should not be allowed to go forward only to the benefit of the lawyers who file them. This legislation will go a long way toward eliminating abuses that have become increasingly common in the last decade.”

Thomas Donohue, president of the U.S. Chamber of Commerce, said the Senate “has taken a critical step toward granting families, consumers and employers relief from the heavy burden of lawsuit abuse. Now it’s time for the House to finish the job and take back our civil justice system from plaintiffs’ lawyers seeking jackpot justice.”

The Association of Trial Lawyers of America said insurance, tobacco, drug, chemical and other companies had financed the push to get the legislation through the Senate. “Every American’s legal rights are diminished by this anti-consumer legislation,” said association president Todd A. Smith said.

Bush and other bill supporters – who have pushed for the legislation for almost six years – say it is needed because greedy lawyers have taken advantage of the state system by filing frivolous lawsuits in state courts where they know they can get big verdicts.

Senators who back the bill say lawyers make more money from such cases than do the actual victims, and that lawyers sometimes threaten companies with class action lawsuits just to get quick financial settlements. Regular people, they assure, will not lose their day in court.

Opponents say Bush and other bill supporters are trying to help businesses escape proper judgments for their wrongdoing – and also to hurt the trial lawyers who litigate the cases, some of whom are big Democratic contributors.

“Are there bad lawyers that bring meritless cases? Sure there are, and we should crack down on them,” said Senate Democratic leader Harry Reid of Nevada, a former trial lawyer. “But this bill is not about punishing bad lawyers. It is about hurting consumers and helping corporations avoid liability for misconduct.”

Eight Democrats were sponsors of the bill, leaving the rest with no way to block it.

Changing the legal system – including class action lawsuits, medical malpractice lawsuits and asbestos injury lawsuits – has been a priority of Bush and the business community.