Insurers Distressed By Senate Class Action Vote

By Steven Brostoff, Washington Editor

NU Online News Service, Oct. 23, 9:22 a.m. EDT,Washington?The insurance industry is expressingdisappointment with a Senate vote yesterday that at leasttemporarily sidetracks long sought class action reformlegislation.

Supporters of the legislation fell just one vote short of the 60required to invoke cloture on the class action reform bill. Thismeans that opponents of the measure will be able to filibuster itshould it be brought up for debate.

The failure to invoke cloture will force supporters of classaction reform to further compromise the legislation in order to getthe needed vote. The final vote on cloture was 59 for and 39against.

Melissa Shelk, vice president of federal affairs for theWashington-based American Insurance Association, said that it is"tremendously disappointing" that class action reform could not goforward despite strong bipartisan support.

She urged the opponents of the legislation to reconsider theirvotes.

Anne Sittmann, a representative of the Des Plaines, Ill.-basedNational Association of Independent Insurers, said NAII is verydisappointed with the vote. She said NAII hopes the Senateleadership will meet as soon as possible to further discuss andnegotiate in order to obtain the needed vote.

Under class action reform, federal courts would be assignedjurisdiction over major national class action lawsuits subject tocertain conditions.

In addition, the legislation creates a class action bill ofrights aimed at protecting the interests of class members.