Congress approves bill limiting class-action suits

WASHINGTON -- Congress sent President Bush legislation Thursday aimed at discouraging multimillion-dollar class-action lawsuits by having federal judges take them away from state courts, a victory for conservatives who hope it will lead to other lawsuit limits.

The legislation the House passed, 279-149, is the first of Bush's 2005 legislative priorities to win congressional approval. The Senate voted 72-26 for the bill Feb. 10. The president has described class-action suits as often frivolous, and businesses complain that state judges and juries have been too generous to plaintiffs.

"This bill is an important step forward in our efforts to reform the litigation system and to continue creating jobs and growing our economy," said Bush, who is expected to sign the bill today.

But Democrats say the legislation is aimed at protecting GOP business donors and hurting trial lawyers, a traditional part of their base. They also warn that Republican changes to the legal system will only make it harder for people to sue over injuries caused by corporations.

The legislation is "a payback to big business at the expense of consumers," said House Minority Leader Nancy Pelosi, D-Calif.

Changing the legal system -- including class-action, medical malpractice and asbestos injury lawsuits -- has been a priority of Bush, the GOP and the business community. They have criticized what they see as a litigation crisis that enables lawyers to reap huge profits while businesses and consumers are stuck with the bill.

"This is the beginning of meaningful efforts by the Congress to curb lawsuit abuse," said House Judiciary Committee Chairman James Sensenbrenner, R-Wis.

Under the legislation, class-action suits seeking $5 million or more would be heard in state court only if the primary defendant and more than one-third of the plaintiffs are from the same state. But if fewer than one-third of the plaintiffs are from the same state as the primary defendant, and more than $5 million is at stake, the case would go to federal court.