Madam Speaker, I yield myself such time as I may consume. Madam Speaker, with the consideration of this legislation, the majority begins their assault on our Nation's civil justice system. Today we will attempt to preempt State class…
Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, with the consideration of this legislation, the majority begins their assault on our Nation's civil justice system. Today we will attempt to preempt State class actions. Next month we will take up a bankruptcy bill that massively tilts the playing field in favor of credit card companies and against ordinary consumers and workers alike. On deck and pending are equally one-sided medical malpractice bills and asbestos bills that both cap damages and eliminate liability to protect some of the most egregious wrongdoers in America.
The majority's assault on victims and consumers is unprecedented in its scope and stunning in its breadth. Collectively, these measures will close the courthouse doors on millions of Americans harmed by intentional wrongdoing, negligence, and fraud. And so, long after the 109th Congress has forgotten, American consumers and workers will be paying the price for these special interest bills through needless injuries and uncompensated harm.
This legislation will remove class actions involving State law issues from State courts, the forum most convenient for victims of wrongdoing and with the judges most familiar with the substantive law, and this legislation will move it to the Federal courts where the case will take far longer to resolve and is far less likely to be certified.
Now, you do not need to take my word for it. Let us just ask big business itself. The Nation's largest bank, Citicorp admits ``the practical effect (of the bill will) be that many cases will never be heard. Federal judges facing overburdened dockets and ambiguities about applying State laws in a Federal court, often refuse to grant standing to class action plaintiffs.''
Forbes Magazine writes, ``The legislation will . . . make it more difficult for plaintiffs to prevail, since . . . federal courts are . . . less open to considering . . . class action claims.''
Passage of this legislation would be particularly devastating for civil rights cases and labor law cases. As the Lawyers Committee For Civil Rights Under The Law explained, ``The consequences of the legislation for civil rights class actions . . . will be astounding and, in our view, disastrous. Redirecting State law class actions to the Federal courts will choke Federal court dockets and delay or foreclose the timely and effective determination of Federal (civil rights) cases.''
Since the November election we have heard a lot of talk about values, and that is fine; but will someone during this discourse today tell me where the value is in denying senior citizens who suffered heart attacks because they took Vioxx for their arthritis? Where is the morality in preventing poor workers from joining together to obtain compensation when unscrupulous employers pay them slave-labor wages?
Where is the righteousness in telling victims of discrimination that they will have to wait years for a Federal court to consider violations of their own State laws?
If we have learned anything from the Enron, TYCO, Firestone, and other legal debacles, it is that our citizens need more protection against wrongdoers in our society, not less. And yet the class action bill before us takes us in precisely the opposite direction.
The House should reject this one-sided, anti-consumer and anti-civil rights legislation.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I yield myself as much time as I may consume.
The gentleman from Virginia (Mr. Boucher) is a dear friend of mine, and I merely want to take one observation that he made, that this is just a procedural process and that there is no substantive changes, but I say to him, if the legal system is rigged and the rules are stacked against you, you never have to get to the substance; you do not even get your day in court.
That is the problem with this bill. It is a procedural process that prevents people from bringing actions in State courts, and we are sending it to the Federal courts when both the Federal judiciary has spoken against this measure and the State judges have spoken against this measure as well. I think that that should be a very instructive criticism against this bill.
The proposal before us is opposed by both State and Federal judiciaries. It is opposed by the National Council of State Legislatures; consumers and public interest groups, including Public Citizen, the Consumers Federation of America, the Consumers Union, the United States PIRG; a coalition of environmental advocates; health advocates, including the Campaign for Tobacco Free Kids; civil rights groups such as the Alliance for Justice, the Leadership Conference on Civil Rights, the National Association for the Advancement of Colored People, and the Lawyers' Committee for Civil Rights and labor such as the American Federation of Labor-Congress of Industrial Organizations,
Mr. Speaker, I am pleased to yield 4 minutes to my good friend, the gentleman from Massachusetts (Mr. Markey) from the Committee on Energy and Commerce. He has worked with us on many of these issues.
Mr. Speaker, I yield 2\1/2\ minutes to the gentlewoman from California (Ms. Linda T. Sanchez).
(Ms. LINDA T. SANCHEZ and was given permission to revise and extend her remarks.)
Mr. Speaker, I yield 3 minutes to the distinguished gentleman from Virginia (Mr. Scott).
Mr. Speaker, I yield 4 minutes to the distinguished gentleman from North Carolina (Mr. Watt).
Mr. Speaker, I yield 3 minutes to the gentleman from Virginia (Mr. Moran).
Mr. Speaker, I yield myself 1 minute. I would like to respond to my good friend, the gentleman from Virginia (Mr. Moran).
First of all, I think the NAACP and the civil rights groups will be eager to find out that his wisdom is superior to their experience in the civil rights movement. What the gentleman was suggesting may have been correct a number of years ago, but I would point out to the gentleman that the Federal courts more recently have not been as desirable a forum for civil rights activities.
The Bank of Boston case, that was 10 years ago and an anomaly. There are not other examples of class actions where class members lost money. No other court has made the same mistake. I would urge that neither the gentleman nor any of us rewrite class action rules because of one mistake.
Mr. Speaker, I yield 3 minutes to the gentleman from Washington (Mr. Inslee).
(Mr. INSLEE asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I am pleased to yield 5 minutes to the distinguished gentlewoman from Texas (Ms. Jackson-Lee), a member of the Committee on the Judiciary and a ranking subcommittee member.
(Ms. JACKSON-LEE of Texas asked and was given permission to revise and extend her remarks, and include extraneous material.)
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, we have listened carefully to the discussion here, and it is very clear that one thing is for sure: this is not a simple procedural fix to class actions in our courts.
Another thing, it is clear that all of the totally unsatisfactory provisions have not been removed.
First, the bill, as the gentlewoman from Texas has said, harms working Americans and victims of discrimination who are in no position to bring individual actions of wage-and-hour cases or civil rights discrimination claims. Moving the cases to Federal court will result in many never being ever heard at all.
Many State laws provide better protection than Federal statutes. For example, 20 States provide protection for marital status and Federal law does not. Twenty-one States extend Federal definitions of national origin discrimination by including ancestry, place of birth, and citizenship status; and 31 States prohibit genetic discrimination in the workplace, not provided under Federal law.
Secondly, this bill closes the door on victims of large-scale personal injury cases resulting from accidents, environmental disasters, or dangerous drugs that are widely sold. Although these cases are filed in State courts under State law, the bill will treat them as class actions and throw them willy-nilly into the Federal court.
While harming victims of personal injury, this provision greatly helps the companies, like Merck, the company that manufactured the deadly drug Vioxx. Since the discovery of the dangers of Vioxx, hundreds of cases from all over the country have been filed against Merck, and we can anticipate likely thousands more. However, under this proposal before us today, those who suffered harm from the drug will be denied their day in court and their ability to seek justice.
Finally, this bill makes it difficult for consumers to pursue claims against defendants who violated consumer protection laws. The bill will force many of these cases filed in State courts into the Federal system. But some Federal courts will not certify class actions involving the laws of multiple States because they deem the case too complex and unmanageable. Result: harmed consumers will never have their cases adjudicated in the courts.
It also makes it impossible for States to pursue actions against defendants who have caused harm to the State's citizens. State attorneys general often pursue these claims under State consumer protection statutes, antitrust laws, often with the attorney general acting as the class representative for the consumers of the State.
Under this bill, would we want these cases to be thrown into Federal court and severely impede the State's ability to enforce its own laws for its own citizens? That is what will happen. That is what will take place.
So I am very pleased to put in the Record the letter from the States attorneys general opposing this legislation, those attorneys general from California, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oklahoma, Oregon, Vermont, and West Virginia.
I would also like to add the letter from the environmental organizations which have made their case as to why this would be a very harmful measure. The signatories of this letter include the United States Public Interest Research Group, PIRG; the Wilderness Society; the Sierra Club; the National Environment Trust; Greenpeace; Friends of the Earth; and the National Audubon Society, and many others.
Finally, Mr. Speaker, I include in this debate from the Leadership Conference and the AFL-CIO, and the Alliance For Justice, all writing on one letter, and they plead with us in the House of Representatives to protect working men and women and civil rights litigants by opposing the measure that is before us.
Washington, DC, February 15, 2005.
Dear Representative: On behalf of the undersigned civil
rights and labor organizations, we write to urge you to vote
against the Class Action Fairness Act (S. 5), which passed
the Senate last week. While the bill was pending before the
Senate, we pushed for an amendment offered by Senator Kennedy
that would have exempted civil rights and wage and hour state
law cases. Because the amendment was not adopted, we ask you
to reject S. 5 in order to ensure that the Class Action
Fairness Act does not adversely impact the workplace and
civil rights of ordinary Americans by making it extremely
difficult to enforce civil rights and labor rights.
During Congress' extensive examination into the merits of
class action lawsuits, nowhere has a case been made that
abuses exist in anti-discrimination and wage and hour class-
action litigation. By allowing dozens of employees to bring
one lawsuit together, the class-action device is frequently
the only means for low wage workers who have been denied mere
dollars a day to recover their lost wages. Moreover, class
actions also are often the only means to effectively change a
policy of discrimination. These suits level the playing field
between individuals and those with more power and resources,
and permit courts to decide cases more efficiently.
Wage and hour class actions are most often brought in state
courts under the law of the state in which the claims arise.
The reason is that state wage and hour laws typically provide
more complete remedies for victims of wage and hour
violations than the federal wage and hour statute. For
instance, the federal Fair Labor Standards Act (FLSA) offers
no protection for a worker who works 30 hours and is paid for
20, so long as the worker's total pay for the 30 hours worked
exceeds the federal minimum wage. However, many states have
``payment of wage'' laws that would require that the worker
be fully paid for those additional 10 hours of work. Also,
federal law provides no remedy for part-time workers who
often work 10-16 hour days, yet earn no overtime because they
work less than 40 hours per week. At least six states and
territories, however, including California and Alaska,
require payment of overtime after a prescribed number of
hours are worked in a single day.
Likewise, state laws increasingly provide greater civil
rights protection than federal law. For example, every state
has passed a law prohibiting discrimination on the basis of
disability. Some of these state statutes provide a broader
definition of disability and a greater range of protection in
comparison to the federal Americans with Disabilities Act
including California, Minnesota, New Jersey, New York, Rhode
Island, Washington, and West Virginia. In addition, every
state has enacted a law prohibiting age discrimination in
employment, and some of these state laws--including those of
California, Michigan, Ohio and the District of Columbia--
contain provisions affording greater protection to older
workers than comparable provisions of the federal Age
Discrimination in Employment Act (ADEA).
In addition, many state laws provide protections to
classifications not covered by federal law. For example, the
following states provide protection for marital status:
Alaska, California, Connecticut, Delaware, Florida, Hawaii,
Illinois, Maryland, Michigan, Minnesota, Montana, Nebraska,
New Hampshire, New Jersey, New York, North Dakota, Oregon,
Virginia, Washington, and Wisconsin. Moreover, several states
have expanded Title VII's ban on national origin
discrimination to prohibit discrimination on the basis of
ancestry, or place of birth, or citizenship status. These
states include Arkansas, California, Colorado, Connecticut,
Hawaii, Illinois, Indiana, Kansas, Maine, Massachusetts,
Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, South
Dakota, Vermont, West Virginia, Wisconsin, Wyoming, and the
Virgin Islands.
Finally, 31 states have enacted legislation prohibiting
genetic discrimination in the workplace--an important
protection given the rapid increase in the ability to gather
this type of information. The 31 states are Arizona,
Arkansas, California, Connecticut, Delaware, Hawaii, Iowa,
Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan,
Minnesota, Missouri, Nebraska, Nevada, New Hampshire, New
Jersey, New York, North
Carolina, Oklahoma, Oregon, Rhode Island, South Dakota,
Texas, Utah, Vermont, Virginia, Washington, and Wisconsin. In
addition, Florida and Illinois have enacted more limited
protections against genetic discrimination.
Under S. 5, citizens are denied the right to use their own
state courts to bring class actions against corporations that
violate these state wage and hour and state civil rights
laws, even where that corporation has hundreds of employees
in that state. Moving these state law cases into federal
court will delay and likely deny justice for working men and
women and victims of discrimination. The federal courts are
already overburdened. Additionally, federal courts are less
likely to certify classes or provide relief for violations of
state law.
In light of the lack of any compelling need to sweep state
wage and hour and civil rights claims into the scope of the
bill, which is done in the current bill, we urge you to vote
against S. 5. In the event that amendments are offered, we
support any amendment that, like the Kennedy amendment and
others offered in the Senate, preserves the right of
individuals to bring class actions in an effective, efficient
manner.
If you have any questions, or need further information,
please call Nancy Zirkin, Deputy Director of the Leadership
Conference on Civil Rights (202-263-2880); Sandy Brantley,
Legislative Counsel, Alliance for Justice (202-822-6070); or
Bill Samuel, Legislative Director, AFL-CIO (202-637-5320).
Sincerely,
AARP; AFL-CIO; Alliance for Justice; American-Arab Anti-
Discrimination Committee; American Association of People with
Disabilities; American Association of University Women;
American Civil Liberties Union; American Federation for the
Blind; American Federation of Government Employees; American
Federation of School Administrators; American Federation of
State, County & Municipal Employees; American Federation of
Teachers; American Jewish Committee; Americans for Democratic
Action.
The Arc of the United States; Association of Flight
Attendants; Bazelon Center for Mental Health Law; Center for
Justice and Democracy; Coalition of Black Trade Unionists;
Communications Workers of America; Consortium for Citizens
with Disabilities Civil Rights Task Force; Department for
Professional Employees, AFL-CIO; Disability Rights Education
and Defense Fund; Epilepsy Foundation; Federally Employed
Women; Federally Employed Women's Legal & Education Fund,
Inc.; Food & Allied Service Trades Department, AFL-CIO; Human
Rights Campaign.
International Association of Machinists and Aerospace
Workers; International Brotherhood of Boilermakers, Iron Ship
Builders, Blacksmiths, Forgers and Helpers; International
Brotherhood of Electrlcal Workers; International Brotherhood
of Teamsters; International Federation of Professional &
Technical Engineers; International Union of Bricklayers and
Allied Craftworkers; International Union of Painters and
Allied Trades of the United States and Canada; International
Union, United Automobile, Aerospace & Agricultural Workers of
America; Jewish Labor Committee; Lawyers' Committee for Civil
Rights Under Law; Lawyers' Committee for Civil Rights of the
San Francisco Bay Area; Leadership Conference on Civil
Rights; Legal Momentum; Mexican American Legal Defense and
Educational Fund.
NAACP; NAACP Legal Defense & Educational Fund, Inc.;
National Alliance of Postal and Federal Employees; National
Asian Pacific American Legal Consortium; National Association
for Equal Opportunity in Higher Education; National
Association of Protection and Advocacy Systems; National
Association of Social Workers; National Employment Lawyers
Association; National Fair Housing Alliance; National
Organization for Women; National Partnership for Women and
Families; National Women's Law Center; Paper, Allied-
Industrial, Chemical and Energy Workers International Union;
Paralyzed Veterans of America.
People For the American Way; Pride At Work, AFL-CIO;
Service Employees International Union; Transport Workers
Union of America; Transportation Communications International
Union; UAW; Unitarian Universalist Association of
Congregations; UNITE!; United Cerebral Palsy; United Food and
Commercial Workers International Union; United Steelworkers
of America; Utility Worker Union of America; and Women
Employed.
Mr. Speaker, I offer an amendment in the nature of a substitute.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I would like to briefly describe why this substitute is the superior piece of legislation before us today. The substitute is much better for the following reasons: civil rights carve-out. The substitute would carve out State civil rights claims in order to make sure that civil rights plaintiffs, especially those seeking immediate injunctive relief, can have their grievances addressed in a timely manner.
Believe me, this is an issue of great moment to those of us who are still prosecuting for a fair day in our Nation and have civil rights laws to back us up, but we now are pleading to keep the proper forums. For example, every State in the Union has passed a law prohibiting discrimination on the basis of disability. The language does not affect the Federal jurisdiction over Federal claims.
The second consideration for this is the wage-and-hour carve-out. Wage-and-hour class actions are often brought in State courts because State wage-and-hour remedies are often, I am sorry to say, more complete than the Federal wage-and-hour statute; and we have examples of that.
The third reason: we exclude non-class action cases involving physical injuries. The measure before us applies not only to class actions, but also to mass torts. The Democratic substitute removes the mass tort language. And then, of course, the attorney general carve-out which clarifies cases brought by State attorneys general are excluded from the provisions of the class action bill and would not be forced into Federal court.
These are the major reasons why we encourage a supportive vote for the substitute to the measure that is being debated today.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 3 minutes to the gentleman from Virginia (Mr. Scott).
Mr. Speaker, I yield 1 minute to the gentlewoman from California (Ms. Pelosi), the minority leader of our caucus.
Mr. Speaker, I am pleased to yield 3 minutes to the gentleman from New York (Mr. Nadler), a distinguished member of the Committee on the Judiciary.
Mr. Speaker, I am pleased to yield 4 minutes to the gentleman from New York (Mr. Weiner), a distinguished member of the Committee on the Judiciary.
Mr. Speaker, I yield 30 seconds to the gentleman from New York (Mr. Weiner).
Mr. Speaker, I am pleased to yield the balance of my time to the gentlewoman from Texas (Ms. Jackson-Lee), a cosponsor of the substitute amendment.
(Ms. JACKSON-LEE of Texas asked and was given permission to revise and extend her remarks.)
Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.