Text 515, 164 rader
Skriven 2005-02-18 23:34:28 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (050218b) for Fri, 2005 Feb 18
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President Signs Class-Action Fairness Act of 2005
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For Immediate Release
Office of the Press Secretary
February 18, 2005

President Signs Class-Action Fairness Act of 2005
The East Room

President's Remarks
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11:37 A.M. EST

THE PRESIDENT: Thank you all. Thanks for coming. (Applause.) Please be
seated. Thank you for coming. Thanks for the warm welcome. Welcome to the
people's house. Glad you're here for the first bill signing ceremony of
2005. (Applause.)

The bill I'm about to sign is a model of effective, bipartisan legislation.
By working together over several years, we have agreed on a practical way
to begin restoring common sense and balance to America's legal system. The
Class-Action Fairness Act of 2005 marks a critical step toward ending the
lawsuit culture in our country. The bill will ease the needless burden of
litigation on every American worker, business, and family. By beginning the
important work of legal reform, we are meeting our duty to solve problems
now, and not to pass them on to future generations.

I appreciate so very much the leadership that Senator Frist and Senator
McConnell have shown on this bill in the United States Senate. I want to
thank Senator Chris Dodd and Senator Tom Carper and Senator Craig Thomas,
as well for working in a bipartisan fashion to get this good bill to my
desk.

I appreciate Congressman Jim Sensenbrenner, as well as Congressman Lamar
Smith, joining us today. I particularly want to pay tribute to the bill
sponsors -- Senator Grassley and Senator Kohl, as well as Congressman Bob
Goodlatte and Congressman Rick Boucher, who are with us here today.

Congress showed what is possible when we set aside partisan differences and
focus on what's doing right for Congress, and you all are to be -- I mean,
for the country -- and you're to be credited for your good work. Thank you
very much. (Applause.)

I welcome our new Attorney General -- oh, right there. (Laughter.) How
quickly they forget in Washington. (Laughter.) Al Gonzales. Proud you're up
here, Al. Hector Barreto, the SBA. Thank you, all the business leaders,
community leaders, consumer groups who care about this issue. Thanks for
your hard work. Thanks for being patient. Thanks for not becoming
discouraged. And thanks for witnessing the fruits of your labor as I sign
this bill.

Class-actions can serve a valuable purpose in our legal system. They allow
numerous victims of the same wrong-doing to merge their claims into a
single lawsuit. When used properly, class-actions make the legal system
more efficient and help guarantee that injured people receive proper
compensation. That is an important principle of justice. So the bill I sign
today maintains every victim's right to seek justice, and ensures that
wrong-doers are held to account.

Class-actions can also be manipulated for personal gain. Lawyers who
represent plaintiffs from multiple states can shop around for the state
court where they expect to win the most money. A few weeks ago, I visited
Madison County, Illinois, where juries have earned a reputation for
awarding large verdicts. The number of class-actions filed in Madison
County has gone from two in 1998 to 82 in 2004 -- even though the vast
majority of the defendants named in those suits are not from Madison
County. Trial lawyers have already filed 24 class-actions in Madison County
this year. We're in February. (Laughter.) Including 20 in the past week --
after Congress made it clear their chance to exploit the class-action
system would soon be gone.

Before today, trial lawyers were able to drag defendants from all over the
country into sympathetic local courts, even if those businesses have done
nothing wrong. Many businesses decided it was cheaper to settle the
lawsuits, rather than risk a massive jury award. In many cases, lawyers
went home with huge pay-outs, while the plaintiffs ended up with coupons
worth only a few dollars. By the time the settlement in at least one case
was finished, plaintiffs actually owed their lawyers money.

A newspaper editorial called the class-action system "an extortion racket
that only Congress can fix." This bill helps fix the system. Congress has
done its duty, and I'm proud to sign it into law.

Over the past few years I've met people from all over the country who know
the importance of class-action reform firsthand, and three of them are with
us today. Marylou Rigat lives in Connecticut, yet a class-action involving
her faulty roof was resolved by a judge in Alabama. The award covered only
a fraction of the cost of new shingles, but that wasn't Marylou's biggest
problem. She had no idea she was part of the class-action in the first
place, and no one contacted her about her award. She only learned by
accident when she called the company about her warranty. And then she found
out there was nothing more she could do.

Hilda Bankston is with us. And her late husband used to own a drugstore in
Fayette, Mississippi. Their business was doing well, until the store got
swept up in massive litigation just because it dispensed prescription drugs
for a certain drug -- prescriptions for a certain drug. She had to sell the
pharmacy six years ago. But she's still getting dragged into court, again
and again. Here's what she said: "My husband and I lived the American Dream
until we were caught up in what has become an American nightmare."

Alita Ditkowsky is with us. She was part of a class-action against a
company that made faulty televisions. When the case was settled in Madison
County, Illinois, Alita's lawyer took home a big check while she got a $50
rebate on another TV, built by the same company that had ruined the first
TV. (Laughter.) Here's what she said: "I'm still left with a broken TV."
(Laughter.) "He got $22 million. Where's the justice in this?"

I want to thank you all for letting me use your stories, not only here, but
during different events we've had in highlighting the need for class-action
reform, because this act will help ensure justice by making two essential
reforms. First, it moves most large, interstate class-actions into federal
courts. This will prevent trial lawyers from shopping around for friendly
local venues. The bill will keep out-of-state businesses, workers, and
shareholders from being dragged before unfriendly local juries, or forced
into unfair settlements. And that's good for our system, and it's good for
our economy.

Second, the bill provides new safeguards to ensure that plaintiffs and
class-action lawsuits are treated fairly. The bill requires judges to
consider the real monetary value of coupons and discounts, so that victims
can count on true compensation for their injuries. It demands settlements
and rulings to be explained in plain English, so that class members
understand their full rights.

These are needed reforms. It's an important piece of legislation. It shows
we're making important progress toward a better legal system.

There's more to do. Small business owners across America fear that one junk
lawsuit could force them to close their doors for good. Medical liability
lawsuits are driving up the cost for doctors and patients and entrepreneurs
around the country. Asbestos litigation alone has led to the bankruptcy of
dozens of companies and cost tens of thousands of jobs, even though many
asbestos claims are filed on behalf of people who aren't actually sick.

Overall, junk lawsuits have driven the total cost of America's tort system
to more than $240 billion a year, greater than any other major
industrialized nation. It creates a needless disadvantage for America's
workers and businesses in a global economy, imposes unfair costs on job
creators, and raises prices to consumers.

We have a responsibility to confront frivolous litigation head on. I will
continue working with Congress to pass meaningful legal reforms, starting
with reform in our asbestos and medical liability systems.

Once again, I want to thank you all for the hard work on this important
legislation. Class-action reform will help keep America the best place in
the world to do business. It will help ensure justice for our citizens, and
I'm confident that this bill will be the first of many bipartisan
achievements in the year 2005.

And now it is my honor to sign the Class-Action Fairness law. (Applause.)

END 11:46 A.M. EST

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