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![handle is hein.crs/crsahlb0001 and id is 1 raw text is: Order Code RS20667
Updated February 21, 2001
Class Actions and Proposed Reform
in the 106th Congress:
Class Action Fairness Act of 2000
Paul Starett Wallace, Jr.'
Specialist in American Public Law
American Law Division
Summary
S. 353 reflects a preference for class actions to be adjudicated in federal courts and
would give U.S. district courts original jurisdiction over class actions with claims
aggregating $2,000,000 or more. It is intended to protect class members and to make
the procedure easier for them to understand but, conversely, it is also said to be anti-
plaintiff and pro-business. The Senate Judiciary Committee reported out an amended
version of the bill, but the 106' Congress adjourned without taking further action. This
report summarizes the action the 106' Congress took on this legislation and will not be
updated.
Congressional Intent
The provisions of the bill, as introduced, which remained in the amended version
reported from Committee,2 are intended to: (1) require that notice of proposed
settlements in all class actions as well as all class notices . .. be in clear, easily understood
English and ... include all material settlement terms including the amount and source of
attorneys' fees;(2) require that State attorneys generalbe notified of any proposed class
settlement that would affect residents of their States . . . [which would] give a State
attorney general the opportunity to object if the settlement terms are unfair; and (3) allow
1 This is an update of CRS Report RS20067, S. 353, 106th Congress, the Class Action Fairness
Act of 2000, by P.L. Morgan.
2 Reported favorably, without written report, from the Senate Committee on the Judiciary with an
amendment in the nature of a substitute, July 27, 2000. 146 Cong. Rec. S7838 (daily ed. July 27,
2000). The Committee subsequently filed a written report, Sen. Report No. 106-402 (2000).
Congressional Research Service +. The Library of Congress
CRS Report for Congress
Received through the CRS Web](ViewImageLocal?handle=hein.crs/crsahlb0001&div=1&collection=&method=preview&ext=.png&size=3)