U.S. Senate Passes Class Action Fairness Act

Class Action Fairness Coalition Congratulates Senator Cantwell for Supporting Washington State Businesses and Consumers

SEATTLE, Feb. 11 -- Washington State businesses and consumers won a major victory yesterday, thanks in large part to the support of U.S. Senator Maria Cantwell, according to the Class Action Fairness Coalition, a group committed to reforming the class action system.

"Senator Cantwell stood with other Democrats and supporters of thoughtful legal reform in the Senate's overwhelming support to reform the system," said coalition spokesperson Ben Gitenstein. "Yesterday's successful 72 - 28 vote in favor of S.5, The Class Action Fairness Act, represents a moderate but important step forward in the fight to create a more stable business environment and to return the class action system to its original intent -- a means by which consumers can effectively seek fair settlements."

Gitenstein called the reform "critically important," pointing what it calls a "perfect storm of badly served justice and business uncertainty" due to the sharp rise in class action filings in state courts coupled with a change in the way Class Action settlements are administered.

Under the former system, companies and lawyers have been able to create "coupon settlements" instead of administering judgments. This system allows the defendant to pay damages to the small minority of claimants that redeem them, while at the same time allowing lawyers to value their fees based on the full coupon amount, according to the reform group.

In a statement issued February 10, Senator Cantwell said she stands by the moderate reforms of the Class Action Fairness Act: "The Class Action Fairness Act improves the process of organizing and trying class action cases, by moving most of the larger cases into federal court. I value efficiency and common sense in our justice system, and a single federal court can better streamline and manage a large multi-state lawsuit, than can numerous state courts all over the country," the statement says.

"The Class Action Fairness Act benefits plaintiffs, defendants and consumers. It provides more certainty to plaintiffs about the courts that will hear their cases. It provides checks on the abuses in the current system, such as net loss settlements where class members actually lose money, the more egregious coupon settlements where class members receive little or nothing of value, and outcomes where the lawyers receive huge windfalls at the expense of their clients and defendants. I believe that reforming the class action system is good for all Americans, including consumers and businesses. Today I joined a bipartisan group of 72 Senators in passing a balanced bill that ensures the injured their day in court, and creates a more efficient, just and effective class action system."

The Washington State Class Action Fairness Coalition is made up of reform advocates from around the state. For more information, contact Coalition Manager Ben Gitenstein at 206-282-1990.

206-282-1990