Group Calls for Passage of the 'Class Action Fairness Act'

July 23, 2002

Agricultural representatives were in Washington Monday to ask Congress to pass class action lawsuit reform. The group included hog farmers, tomato growers, food processors and a major grocery store chain. They gathered on the Mall to ask the U.S. Senate to pass S. 1712, the Class Action Fairness Act.

"There has been a dramatic increase in the number of frivolous class action lawsuits filed against high tech, insurance, health care, manufacturing and financial services companies in state courts over the last decade," said Bryce Neidig, president of the Farm Bureau of Nebraska. "Those of us in the ag sector are concerned that we may be the next target of these abusive lawsuits. Agriculture is vital to our nation's economy, and Congress must take steps to assure that we do not become the next cash cow for trial lawyers."

The bi-partisan Class Action Fairness Act passed the House in March and is pending in the Senate. The legislation makes it easier to move large, multi-state class action lawsuits from state to federal court, thereby allegedly curbing the practice of "venue shopping" by trial lawyers. In addition, the bill contains a "plaintiffs bill of rights" that includes judicial scrutiny of settlements in which consumers receive coupons or something of little value while their attorneys receive millions of dollars in legal fees; a requirement that class action settlement notices be written in "plain English"; a prohibition on settlements in which class members actually lose money to pay attorneys' fees; and the fair and even distribution of damage awards to all plaintiffs.

"Class action reform would restore fairness to our legal system, reduce litigation expenses, curtail excessive class action suits and protect consumers. The Senate should plow ahead on this important piece of legislation," said Neidig.

While in Washington, the agriculture leaders will distribute a letter to senators' offices signed by 394 agricultural organizations and companies asking for passage of the legislation.

The group's visit to Washington is hosted by the U.S. Chamber Institute for Legal Reform and the Food Marketing Institute. In addition to the press conference on the Mall, the group attended a briefing at the White House and met with members of the Senate.