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The Administration strongly supports the enactment of H.R. 2341
as an important step in reforming class action litigation. Among
the bill's many commonsense provisions, the Administration supports
the proposal to establish a consumer class action bill of rights
that would: (1) require notice of a lawsuit to class members
in "plain English"; (2) require judicial review of settlements
that give class members only "coupons" or other non-cash benefits;
and (3) prohibit a court from approving a settlement that discriminates
among plaintiffs on account of their geographical location or
status as class representatives.
The bill also would make long-needed changes to the requirements
for federal diversity jurisdiction over class action cases.
The Administration strongly supports the proposal to permit
removal to federal court of a class action if the aggregate
amount in controversy exceeds $2 million and there is minimal
diversity (at least one plaintiff representative and one defendant
are from different States). Combined with existing federal
rules for consolidation of related federal cases, this proposal
would help avoid the inefficiency, waste, and unfairness that
has too often resulted from multiple overlapping class action
suits.
The Administration would support adding, at the appropriate
point in the legislative process, a provision to Section 7
of the bill to make clear that the authority of the Supreme
Court under Section 2072, 2074 or 2075 of Title 28 of the
U.S. Code to issue certain rules that supersede conflicting
laws cannot be used to supersede this legislation and amendments
made by this legislation.
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