The Senate passed a resolution yesterday that would curb the amount that can be won in class action law suits in what is described as a political victory for the White House. The bill passed 72-26 and is expected to go to the House of Representatives next week.
'Our country depends on a fair legal system that protects people who have been harmed without encouraging junk lawsuits that undermine confidence in our courts while hurting our economy,' Bush said in a statement.
Among the provisions of the bill, class action lawsuits will have to be brought in federal court rather than in state courts unless more than one-third of the plaintiffs are from the state the suit is brought in. It is believed that this will lower the size of verdicts. The bill also effects medical malpractice and asbestos cases.
The new law would also lower attorney's fees in class action suits, especially suits in which the plaintiffs receive non-monetary compensation such as a discount or coupon to redeem.
Critics of the bill say it will only help big businesses escape judgments when they behave inappropriately and cause harm to the public.
Senate Minority Leader Harry Reid of Nevada opposed the bill. 'Are there bad lawyers that bring meritless cases? Sure there are, and we should crack down on them. But this bill is not about punishing bad lawyers. It is about hurting consumers and helping corporations avoid liability for misconduct.'
Because eight Democrats cosponsored the bill, there was no chance of blocking its passage for Democrats.
This is definitely a major political victory for the Bush Administration. The question is, is it also a victory for the American people.