Mr. President, I ask unanimous consent that the Senator from Connecticut be allowed 5 more minutes. Mr. President, yesterday on the Senate floor I expressed serious concerns about this legislation that is pending before the Senate. I…
Mr. President, I ask unanimous consent that the Senator from Connecticut be allowed 5 more minutes.
Mr. President, yesterday on the Senate floor I expressed serious concerns about this legislation that is pending before the Senate. I explained at that time that this legislation, in my opinion, is one of the most unfair, anti-consumer pieces of legislation to come before the Senate in a long time. It slams the courthouse doors on a wide range of injury plaintiffs, it turns federalism upside down by preventing State courts from hearing State law claims, and it limits corporate accountability at a time of rampant corporate scandals. Instead of turning up
the heat on corporate fraud, this bill lets corporate wrongdoers off the hook.
At the beginning of the debate yesterday, I said this is a bad piece of legislation, but there are going to be some amendments offered, amendments that will improve this bad legislation. They would have made significant improvements. But my hope of these amendments passing was very short lived. It did not happen. Over the last 2 days, the Senate has turned away each and every effort to make this bill less offensive. Every single amendment--each a message of fairness--was debated and turned down. That is a shame. Proponents of this bill explained their opposition to the common sense amendments by describing the current bill as a ``delicate compromise.'' I have heard that so many times. I spoke to Congressman Sensenbrenner, the chairman of the Judiciary Committee in the House, who is supposedly the gatekeeper on this legislation. He said: We are going to accept legislation that is in keeping with what you did last time. Well, when he said, What you did last time, he was talking about the bill that came out of the Senate Judiciary committee and was here on the floor. These changes would not have dramatically altered that.
If you went downtown to see what K Street wanted with these amendments, of course they were against all of them because, in my opinion, this legislation slams the door on most everyone who wants to bring a case and use class action as the tool for coming to court.
The debate yesterday was characterized by two significant misunderstandings about the bill. First, proponents claimed that under this bill, class action lawsuits could stay in State courts as long as two-thirds of the plaintiffs are from a single State. Well, in fact, the bill reverses longstanding Federal court diversity rules by saying that no matter how many plaintiffs are from a single State, the case can still be removed to Federal court if the defendant corporation is incorporated in a different State. Keep in mind, of the Fortune 500 companies, 58 percent of them are incorporated in Delaware, so the majority of class action lawsuits would be removable just on that figure alone.
For example, in the State of Nevada, at the famous Yucca Mountain, the contractors were in such a rush, the Department of Energy was in such a rush to drill a hole in this mountain, they had a huge auger. The size of this auger was halfway to the top of the second story of this Chamber. It was a huge machine. It dug a hole almost as big as this Chamber--a big tool going right through that mountain. They knew they were coming to a formation there and that the toxic mineral dust from drilling the formation would cause people to get really sick with silicosis. They knew that, but they were in such a rush that they would not even wet down this big tool to prevent the dust. They drilled dry, so to speak, and this toxic dust flew all over and the workers inhaled it. And today, as we speak, people are dying as a result of that.
Well, there has been a request for the case to be considered a class action--under the old law in existence before this passes--that would allow all those workers to join together in a class action and have it certified. Even though well over two-thirds of the plaintiffs are residents of Nevada, the harm was caused in Nevada, and the defendants were obviously doing business in Nevada, a defendant incorporated in a State other than Nevada could remove the case from Nevada State court. That is how this bill works. It is just unfair.
The second mischaracterization of this legislation is that supporters make it sound as though all we are talking about is venue: These cases will simply move from State court to Federal court and proceed just the same. That is simply not true. Under Supreme Court precedents that this bill does nothing to change, Federal judges routinely dismiss class action lawsuits based on State law. Those cases that are not dismissed go to the back of a very long line in the overburdened Federal court system.
One of the foremost experts on class actions is a man who is also an expert in antitrust law. He is a professor at Harvard Law School. His name is Arthur Miller. Here is what he said:
Federal courts have consistently denied class certification
in multi-state lawsuits based on consumer as well as other
state laws. . . . not a single Federal Circuit Court has
granted class certification for such a lawsuit, and six
Circuit Courts have expressly denied certification.
The rejection of the Feinstein-Bingaman amendment shows this bill's true colors. And I admire greatly Senator Feinstein for having the courage to do the right thing and say: I have been one of the original pushers of this legislation, but what we are trying to do is unfair, and the Bingaman amendment should be adopted. She joined with him for the Feinstein-Bingaman amendment.
So, if the sponsors merely wanted federal court review of lawsuits with national implications, they would not object to an amendment making clear that federal judges may not dismiss these cases.
But without that change, the truth is plain to see: This bill is designed to bury class action lawsuits, to cut off the one means by which individual Americans ripped off by fraudulent or deceptive practices can band together to demand justice from corporate America.
What does this change mean in the real world? It means, for example, that cases like the one brought by Shaneen Wahl will not be able to go forward. Shaneen is a 55 year old woman, and she was diagnosed with breast cancer. Her health insurance company raised the rates on her insurance premiums from $194 a month to $1,800 a month--a little jump in price. She found out that her insurance company was improperly doing this for tens of thousands of other chronically ill patients. She got a lawyer, they banded together in a class action lawsuit, and they prevailed in state court. Under this legislation, the case would be dismissed.
Another breast cancer survivor also a Florida woman, is 40-year-old Susan Friedman. Susan's insurance company removed her case to federal court, where it was dismissed. She is an unlucky example of what will happen to more people under this legislation. This is the fate of many other class action lawsuits under the bill the Senate will soon pass.
Unfortunately, insurance companies are ripping people off all the time, and this legislation will give the biggest, best businesses in the world, the insurance companies, more money.
In the real world, this legislation means that when a phone company systematically bills customers for services they had cancelled or a plumbing company routinely overcharges customers by $10, those practices will not be brought to light. The dollar amounts would be too small. Why should the plumbing company get an extra $10 from everyone? I guess what this legislation means is if you cheat a lot, you can take them to court, but if you cheat just a little bit, lots and lots of times, have at it, because no one can do anything about it. This is the ``cheat a little bit'' legislation.
This legislation is not good. It will help the tobacco industry avoid accountability. It virtually guarantees that tobacco-related cases will end up in federal court where they won't be able to proceed. I had a person, Fritz Hahn, who lived on my property in Nevada to keep an eye on things. He was there for many years. He started smoking when he was a teenager. He is now dead as a result of tobacco. He smoked too much. He got throat cancer. He died a slow, terrible death. But for class action lawyers, tobacco companies would have a free rein, and they would be able to kill a lot more people like Fritz Hahn.
That is what class action is all about, joining together and going after those companies who do bad things to people. However, this legislation will make it so much more difficult. That is why numerous consumer groups, including the Campaign for Tobacco-Free Kids, the Leadership Conference on Civil Rights, the Consumers Union, the AFL- CIO, Public Citizen, and many others have urged the Senate to reject the bill.
I ask unanimous consent to print in the Record scores and scores of companies that support my statement against this legislation.
Organizations are against it. State court judges, Federal judges, many state Attorneys General, and the National Conference of State Legislators are against it. Officials in our home States are telling us not to do this. The only groups that want us to pass this bill are those representing defendants in these lawsuits. Sure, they want to be relieved of the burden of accountability. We shouldn't let them. This is not just a battle between big business and lawyers. It is more. It is certainly more anti-lawyer than I would like to think. But that is what we hear coming from the White House.
At a meeting in Las Vegas, the President said: The most hurtful thing in the American economy today is lawyers. I don't believe that, as indicated by the instances I gave about tobacco. Sure there are bad lawyers who bring meritless cases, and there should be something we do to crack down on them. But this bill is not about punishing bad lawyers. More fundamentally this bill is about limiting access to civil courts and hurting consumers.
One of the grievances that inspired our Founding Fathers to revolt against King George was they couldn't bring their grievances to a body.
What time is that? I will use leader time.
I thank the Chair.
As I was saying, one of the grievances that inspired our Founding Fathers to revolt against King George was limited access to the civil courts. That was based on the rights secured in the year 1215, when King John signed the Magna Carta. King John couldn't sign his name, so he put an X. From that day forward, one of the things that was brought over the ocean and is now in our common law, when the Founding Fathers developed our country, is that you bring to court your grievances. They had a jury that could sit down and talk about what was good and bad about your case. Access to the courts is a basic right in our democracy, and after today it will be a diminished right.
These rights are being denigrated, taken away from us with this legislation. It is too bad. A basic right that has been in existence since we have been a country, they are chipping away at.
I am going to vote against this ill-considered bill. I recognize it is going to pass. I think that is too bad. I can say this without any question: Downtown beat us. There is no question about that.