Ill. Panel Examines Class Action Curbs

By E.E. Mazier

NU Online News Service, Sept. 6, 12:25 p.m. EST? An Illinois legislative panel is due to begin hearings this afternoon on a proposal to tighten requirements for class action lawsuits in the state.

The Senate Judiciary Subcommittee session is being held at 1 p.m. CST on the Southern Illinois University campus at Edwardsville, Ill., in Madison County, which is one of the two busiest jurisdictions in the state for class action filings.

Cook County, the other favored county for class actions, is scheduled as the site of a second hearing Sept. 19 in Chicago.

Earlier this year, the Senate Judiciary Committee sent to the Judiciary Subcommittee legislation that would impose more stringent requirements for certifying class action lawsuits. The Subcommittee was charged to hold further discussion on SB 1127.

According to a recent Manhattan Institute study, Illinois is seeing a sharp rise in class action lawsuits. The study ranked Cook and Madison as two of the three most active counties in the United States for class action suits.

"Illinois has become a state of choice for class action lawsuits," declared Laura Kotelman, counsel for the National Association of Independent Insurers, Des Plaines, Ill.

"Our reputation for having an attractive environment for the certification of national classes serves as a magnet for out-of-state trial lawyers who misuse the system for their personal gain," Ms. Kotelman continued.

She said that "it is time to stop the corruption of the Illinois courts and move forward in adopting a more rigorous approach to class action certification."

According to Ms. Kotelman, by tightening certification requirements and adopting legislation similar to that already enacted in 40 other states, "Illinois will go a long way to better protecting the interests of its citizens, the courts, as well as businesses and consumers across the country."

The NAII said that current law allows attorneys to have national class action cases heard in "obscure county courts, resulting in these smaller courts dictating public policy positions and insurance regulation for all 50 states."

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Ill. Panel Examines Class Action Curbs

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