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Jun 11, 2003

SUMMARY OF AMENDMENTS SUBMITTED TO THE RULES COMMITTEE ON H.R. 1115 - Class Action Fairness Act of 2003

Summary of Amendments Submitted to the Rules Committee on
H.R. 1115, Class Action Fairness Act of 2003


RULE TO PROVIDE FOR CONSIDERATION OF H.R. 1115, AND AMENDMENTS MADE IN ORDER

(in alphabetical order)

Conyers/Delahunt #7
Strikes section 8 of H.R. 1115 and adds a provision to change the effective date of the bill to on or after the date of enactment.

Delahunt/Scott (VA) #5
Strikes section 6 of the bill which provides for: (a) the immediate appeal of district court rulings granting or denying a motion for class certification; and (b) a stay of discovery and other proceedings while the appeal is pending.

Graves #2
Requires a unanimous jury verdict in order to award punitive damages in a class action.

Jackson-Lee #6
Prevents domestic corporations from not being subject to the jurisdiction of U.S. Federal Courts, and liability in class action lawsuits filed in Federal Courts, through mergers or repatriations with foreign companies.

Lofgren/Linda Sanchez #3
Preserves the ability of local prosecutors to enforce state antitrust and consumer protection laws in state courts.

Sandlin/Conyers #8
Amendment in the Nature of a Substitute. Strikes everything after the enacting clause and inserts the following:
Section 1 of the amendment contains a short title, reference, and table of contents.
Section 2 of the amendment establishes improved procedures for certain class actions, including provisions for the use of coupon settlements, court approval of settlements, sealing of class action documents, and interlocutory appeals.
Section 3 of the amendment enacts the recommendations of the United States Judicial Conference with respect to notice to class members.
Section 4 of the amendment establishes a state court multi-district litigation panel for class actions. The panel allows for the consolidation of class actions pending in different state courts for pretrial proceedings. Section 5 of the amendment authorizes the National Center for State Courts to develop and implement a procedure by which state courts or the state court multi-district litigation panel may transfer certain class actions to federal court.

Sensenbrenner/Boucher/Goodlatte/Moran (VA)/Dooley/Stenholm/Terry #4
Slightly broadens the category of class action cases that would remain in state court in two ways. First, this amendment raises the aggregate amount in controversy required for federal court jurisdiction from $2 million to $5 million. Second, it allow federal courts discretion to return intrastate class actions in which local law governs to state courts after weighing five factors to determine if the case is appropriately of a local character. This discretion would come into play when between one-third and two-thirds of the plaintiffs are citizens of the same state as the primary defendants. If less than one-third are citizens of the same state, the case would automatically be eligible for federal court jurisdiction under the new diversity rules in this bill. Likewise, if more than two-thirds are citizens of the same state, the case would not be subject to the new rules in this bill and would remain in state court.

Terry #1
Changes jurisdictional structure of H.R. 1115 and is similar to language offered in the Senate Judiciary Committee by Chairman Hatch and Senator Feinstein. Slightly narrows scope of the proposed bill by reducing the number of cases that would automatically go to federal court. Withdrawn.

* Summaries derived from information submitted by the amendment sponsors.