- Sep 12, 2004
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http://www.msnbc.msn.com/id/6947569/
WASHINGTON - The Senate on Thursday gave President Bush the first legislative victory of his second term by approving legislation to help shield businesses from major class action lawsuits.
Under the legislation, long sought by big business, large multistate class action lawsuits like the ones that have been brought against tobacco companies could no longer be heard in small state courts. Such courts have handed out multimillion-dollar verdicts.
Instead, the cases would be heard by federal judges, who have not proven as open to those type of lawsuits.
The Senate passed the bill 72-26. The House is expected to take it up next week and send it to President Bush for his signature.
Bush and other bill supporters ? who have pushed for the legislation for almost six years ? say it is needed because greedy lawyers have taken advantage of the state system by filing frivolous lawsuits in state courts where they know they can get big verdicts.
Senators who back the bill say lawyers make more money from such cases than do the actual victims, and that lawyers sometimes threaten companies with class action lawsuits just to get quick financial settlements. Regular people, they assure, will not lose their day in court.
The bill ?is designed to rein in the lawsuit abuses, and it does just that,? Senate Majority Leader Bill Frist, R-Tenn. said. ?A plaintiff may end up in federal court, yes, rather instead of state court, but no citizen will lose his or her right to bring a case.?