Class Action Fairness Act of 2005
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| Long title | An Act to amend the procedures that apply to consideration of interstate class actions to assure fairer outcomes for class members and defendants, and for other purposes. |
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| Enacted by | the 109th United States Congress |
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| Public law | Pub.L. 109–2 |
| Statutes at Large | 119 Stat. 4–14 |
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The U.S. Class Action Fairness Act of 2005, 28 U.S.C. Sections 1332(d), 1453, and 1711–1715, expanded subject-matter jurisdiction over many large class-action lawsuits and mass actions taken in the United States.
The bill was the first major piece of legislation of the second term of the Bush Administration. Business groups and tort reform supporters had lobbied for the legislation, arguing that it was needed to prevent class-action lawsuit abuse. President George W. Bush had vowed to support this legislation.
The Act permits federal courts to preside over certain class actions in diversity jurisdiction where the aggregate amount in controversy exceeds $5 million; where the class comprises at least 100 plaintiffs; and where there is at least "minimal diversity" between the parties (i.e., at least one plaintiff class member is diverse from at least one defendant). The court, however, may decline jurisdiction under certain circumstances, and is required to decline jurisdiction in certain others. The Act also directs the Courts to give greater scrutiny to class action settlements, especially those involving corporations.
The Act accomplished two key goals of tort reform advocates:
The Act passed the Senate 72 to 26, with all 53 Republicans voting in favor, and the Act passed the House 279 to 149, with the support of 50 Democrats and all but one of the Republicans. President George W. Bush signed the act into law on February 18, 2005.
Critics charged that the legislation would deprive Americans of legal recourse when they were wronged by powerful corporations. Congressman Ed Markey (D-Mass.) called the bill "the final payback to the tobacco industry, to the asbestos industry, to the oil industry, to the chemical industry at the expense of ordinary families who need to be able go to court to protect their loved ones when their health has been compromised."
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