On Feb. 18, President Bush signed into law the Class Action Fairness Act, the first step in a wide-reaching tort reform agenda. The legislation, passed by sizable majorities in both the House and Senate, would limit what supporters call law-suit abuse by removing certain class actions to federal court.
The insurance industry, which long has sought such a measure, responded with enthusiasm and relief. “Class action abuse is a major contributor to the $246 billion that our legal system costs consumers each and every year,” said Carl Parks, senior vice president, government affairs, for the Property Casualty Insurers Association of America.
Others, among them many consumer advocacy groups and some politicians and legal scholars, are dismayed by the bill's passage. The Consumer Federation of America asserted that the new legislation is unfair to consumers and represents “a dangerous change to our civil justice system.” House Democratic Leader Nancy Pelosi described the measure as “an injustice to consumers and a windfall for irresponsible corporations.”
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