OPPOSE S - American Civil Liberties Union



COALITION TO PreservE Access to Justice

OPPOSE THE “CLASS ACTION FAIRNESS ACT”

PROTECT THE RIGHTS OF VICTIMS OF DISCRIMINATION, CONSUMER FRAUD AND TOXIC POLLUTION

JANUARY 26, 2004

Dear Senator:

We, the undersigned groups, remain strongly opposed to the proposed class action legislation that would undermine consumer, labor, and civil rights in class action lawsuits. When S. 1751 was brought up for a vote in October 2003 it failed to garner sufficient support. Since that time a deal has been cobbled together behind closed doors. The new deal, however, fails to correct the critical flaw of the original bill. We understand that the new deal has now become an amended version to S. 274.

The critical flaw of S. 274 is that citizens will be denied the right to use their own state courts to bring class actions under their own state law, even where every class member is from the same state. Under the provisions of S. 274, a defendant can have a class action case removed from state court into federal court if the defendant is not incorporated or does not have its principal place of business in that state. This means that regardless of how much business it does, how many employees it has, or how much damage it does in a state, the defendant is protected from the reach of that state’s courts even when its actions harmed hundreds of that state’s citizens.

The business lobby is pushing for this bill because corporations that violate state law are less likely to be held accountable for their wrongdoing when a federal court hears the case rather than a state court. Further, these same corporations now seek to avoid responsibility under state law at the very time the states are enacting laws expanding civil rights, consumer, and environmental protections to fill the void created through federal inaction. When the case is based solely on a violation of state law, no compelling reason exists for stripping state courts of the ability to enforce that state law. State courts should be given the opportunity to develop their own state law in emerging areas. Based on the principles of federalism, federal law discourages federal judges from expanding liability under state law.

We strongly urge you to oppose S. 274. Do not be misled – the new version of S. 1751 does not improve the class action system for all. Quite to the contrary, the bill will make it more difficult for victims of discrimination, consumer fraud, and toxic pollution to receive justice when corporations violate state law.

If you have any questions or need more information about the revised Class Action Fairness Act, please contact Nancy Zirkin, Deputy Director/Director of Public Policy, Leadership Conference on Civil Rights, 202.263.2880; or Sandy Brantley, Legislative Counsel, Alliance for Justice, 202.822.6070.

Sincerely,

ACLU

ADA Watch/National Coalition for

Disability Rights

AFL-CIO

Alliance for Justice

Alliance for Retired Americans

American Association of University

Women

American Federation of Government

Employees

American-Arab Anti-Discrimination

Committee

Americans for Democratic Action

Campaign for Tobacco-Free Kids

Center for Justice and Democracy

Center for Women Policy Studies

Citizen Action of New York

Citizen’s for Consumer Justice

Civil Justice, Inc.

Coalition to Stop Gun Violence

Communication Workers of America

Community Legal Services, Inc.

Consumer Federation of America

Consumers for Auto Reliability and

Safety

Consumers Union

Disability Rights Education and Defense

Fund Inc.

Earthjustice

Education Law Center

Epilepsy Foundation

Families USA

Federally Employed Women

Florida Consumer Action Network

Friends of the Earth

Georgia Rural and Urban Summit Group

Georgia Watch

Greater Upstate Law Project

Juvenile Law Center

Lawyers’ Committee for Civil Rights

Under Law

Leadership Conference on Civil Rights

Legal Aid Society of Texas

Legal Clinic for the Disabled, Inc.

Legal Services of New Jersey

Main People’s Alliance

Mexican American Legal Defense and Educational Fund

Maryland Consumer Rights Coalition

Michigan Citizen Action

NAACP Legal Defense and Educational

Fund

National Alliance of Postal and Federal

Employees

National Association of Consumer

Advocates

National Association of Human Rights

Workers

National Association of the Deaf

National Bar Association

National Committee on Pay Equity

National Consumer Law Center

National Consumers Coalition

National Council of La Raza

National Employment Lawyers

Association

National Fair Housing Alliance

National Gay and Lesbian Task Force

National Law Center on Homeless &

Poverty

National Legal Aid and Defender

Association

National Organization for Women

National Women's Law Center

Natural Resources Defense Council

New Jersey Citizen Action

North Carolina Justice Center

North Dakota Progress Coalition

NOW Legal Defense and Education Fund

Ocean State Action (Rhode Island)

Pennsylvania School Reform Network

People For the American Way

Pride At Work

Project Equality

Public Citizen

Religious Coalition for Reproductive

Choice

Sargent Shriver National Center on

Poverty Law

Sierra Club

U.S. PIRG

UNITE!

United Food and Commercial Workers

Union

United Steelworkers of America

USAction

Violence Policy Center

Washington Citizen Action

West Virginia Citizen Action Group

Wisconsin Citizen Action

Women Employed

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