Latest Class Action Bill Gets Bush's Okay
By Arthur D. Postal, Washington Bureau Chief
NU Online News Service, Feb. 8, 3:50 p.m. EST, Washington?The Bush administration has weighed in with a strong letter of support for the latest version of class action reform legislation in the Senate, raising industry hopes that the bill will pass there later this week.[@@]
The "statement of administration policy" was issued late Monday by the Office of Management and Budget, the traditional way that an administration either voices support for a bill being debated in Congress or says that it will veto a measure if certain provisions are not amended or deleted.
It was issued as the Senate began debate on the bill.
A key indicator of whether the measure will succeed or be derailed in the Senate is expected tomorrow, when an amendment being drafted by Democratic Sens. Dianne Feinstein, Calif., and Jeff Bingaman, New Mexico, is voted on.
Insurance lobbyists said that if the amendment is defeated by a strong vote, it is likely that the bill will be passed by the full Senate by Friday in a form acceptable to the House.
Senator Bingaman's amendment would give federal judges guidance for certifying class-action cases based on state consumer laws. Some Democratic supporters of the bill said the bill now reflects a delicate compromise and urged its passage without amendments. "For those of us who want to see this bill passed, I think this compromise is about the fairest balance we're going to get," said Sen. Thomas Carper, D-Del., a co-sponsor.
Sen.Christopher Dodd, D-Conn., that noted House leaders have pledged to pass the bill quickly only if the Senate approves it as-is.
Republicans, insurers and other industry sectors have said the proposed amendment is unacceptable because it could allow plaintiffs to seek a state jurisdiction where the law is most favorable.
If the amendment is voted down, Rep. James Sensenbrenner, R-Wis., chairman of the House Judiciary Committee, has said that the House is likely to pass the same bill next week.
President Bush, who has made class action reform one of his legislative priorities, is expected to speedily sign the measure once it arrives on his desk.
In a statement issued Feb. 4, Rep. Sensenbrenner and Rep. Tom DeLay, R-Texas, House majority leader, said, "Should the Senate pass the committee-reported text of S. 5 as is, we will immediately take it up in the House and pass it without alternation, so we can quickly deliver it to the president for his signature."
In the statement of administration policy, OMB said, "The administration strongly supports the enactment of S. 5 as an important step in reforming class action litigation.
"The bill will remove significant burdens on class action litigants and provide greater protections for the victims whom the class action device originally was designed to benefit," the statement added. "Reducing the excessive burdens of class action lawsuits on job creation is part of the president's plan to strengthen our economy further."
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