Tuesday, February 22, 2005

Bush Signs Class-Action Changes Into Law (washingtonpost.com)

On Friday, President Bush signed the Class Action Fairness Act of 2005. It makes federal courts the only courts with jurisdiction over many class actions. Under many circumstances, actions filed in state courts may be removed to federal court.

The district court may decline to exercise jurisdiction when at least 1/3 of the plaintiffs AND the primary defendants are citizens of the state in which the action was brought. The district court WILL decline to exercise jurisdiction when 2/3 of the plaintiffs AND the defendant's headquarters are in that state.

The law (Pub. L. 109-2) began as S. 5. (pdf).

Washington Post article: Bush Signs Class-Action Changes Into Law (washingtonpost.com)

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