back February 17, 2005 House Passes Class Action Fairness Act WASHINGTON – First District Congressman Paul Ryan today voted in favor of bipartisan compromise legislation that would prevent class action abuse, cut down on lawyers’ shopping for friendly forums in magnet jurisdictions, and put in place a “consumer class action bill of rights.” This bill – S. 5, the Class Action Fairness Act of 2005 – passed the House by a vote of 279-149.  The Senate already passed this measure. “Class action lawsuit abuse is a drain on our legal system and must be addressed,” Ryan said.  “This legislation will help stop lawyers who routinely manipulate certain courts and leave consumers with little to gain.”       S. 5 includes the following provisions: Fixes a loophole in current law that has led to the proliferation of large class actions in “magnet” state courts.  This legislation creates federal jurisdiction over large, multi-state class actions – class actions where the amount in controversy exceeds $5 million, where there are at least 100 class members, and where any member of the class is a citizen of a different state from any defendant. Provides for carefully crafted exceptions that keep truly local disputes in state court.  Puts an end to the various tricks now used by plaintiffs’ lawyers to stay out of federal court, like naming a local pharmacy or convenience store in a nationwide product liability suit.  Establishes a consumer class action bill of rights to ensure that class members – not their attorneys – are the primary beneficiaries of the class action process.  For example, this legislation: - requires that judges carefully review all coupon settlements and limit the portion of attorneys’ fees attributable to the award of the coupons to the value actually received by class members, - prohibits any settlement under which any class member is obligated to pay the class lawyer more than the class member received under the settlement, unless the court makes a written finding that non-monetary benefits to the class member outweigh the financial loss to the class member.  - bans settlements that award some class members a larger recovery because they live closer to the court.  Print Contact: Kate Matus (202) 226-7326