Providing For Consideration Of H.R. 1115, Class Action Fairness Act Of
Mr. Speaker, I yield myself such time as I may consume. (Mr. FROST asked and was given permission to revise and extend his remarks.) Mr. Speaker, this can be a complicated legal issue, but at its core, this bill that Republicans have given…
Mr. Speaker, I yield myself such time as I may consume.
(Mr. FROST asked and was given permission to revise and extend his remarks.)
Mr. Speaker, this can be a complicated legal issue, but at its core, this bill that Republicans have given such a misleading name, the Class Action Fairness Act, is very simple. Here is what it does. It protects big corporate wrongdoers like Enron and WorldCom against individuals that they harm. It makes it easier for fraudulent and unethical corporations and their executives to escape accountability for their actions.
That may not be what some of its supporters intend, but that is exactly what this bill would do, and it is exactly the type of thing the Republican House has been doing for the past 8\1/2\ years, turning the American people's government over to a small, elite group of the wealthiest and most powerful. We have seen it for the past week as House Republicans have tried to block tax relief for working and military families who need it the most. They gave millionaires tax breaks totaling $93,000, but they called it welfare when
Democrats tried to give $150 in tax relief to the military families who need it most to feed and clothe their children.
We are seeing it again here today on this class action bill. Believe it or not, the latest version of the Republican bill is even worse for consumers than the versions they have offered in the past two Congresses. That is because this one does not just protect future corporate wrongdoers, it acts retroactively to pull the rug out from under the victims of some of the worst corporate scandals in recent memory. If Members do not think that was intentional, just take a look at the rule the Republican leadership has written for this bill.
In the past two Congresses, the House has been allowed to vote on every amendment offered by a Member. In fact, let me read from the Congressional Record from a year ago when my friend the gentlewoman from Ohio (Ms. Pryce) who is handling the rule today was handling the rule at that time.
``I would like to take a moment to clarify for my colleagues that while this is a structured rule, our committee, the Committee on Rules, did make in order every amendment submitted to us on this legislation. The rule simply incorporates some time confines equally applied to all of the amendments in order to provide some level of certainty and order during consideration of the legislation in the House.''
In other words, last year and, in fact, the year before, the Republican majority made in order every amendment that was submitted to the committee. Now, this year they have neglected to make in order two amendments. Which two did they not make in order? The one dealing with retroactivity; that is, one cannot sue somebody for what they did a couple of years ago and suits are already on file, those suits will suddenly go away. Who are we talking about? We are talking about wrongdoers at Enron and WorldCom and other places. But they will not make that amendment in order. That, of course, is the amendment offered by the ranking member of the Committee on the Judiciary, the gentleman from Michigan (Mr. Conyers), and the gentleman from Massachusetts (Mr. Delahunt).
What is the other amendment that they will not make in order this time? That deals with unnecessarily delaying lawsuits by interlocutory appeals and freezing everything in place. What is wrong with that? Well, because as it is written, this class action bill would give Enron the power to unilaterally freeze the case that defrauded retirees in Texas have filed against it. Many of these people have lost their life savings in a massive corporate fraud. Their case has already been delayed more than a year and a half, a delay that allowed Arthur Andersen to shred important documents; and now this bill would give Enron the power to unilaterally delay the case for many more years.
Just to be clear, last year, and 2 years ago, Republicans let all of the amendments be made in order. This year, they cannot do that; no amendment on the question of retroactivity and no amendment on the question of freezing lawsuits pending appeals.
That is not just wrong, it is indefensible, because it is simply welfare for some of the worst corporate wrongdoers, companies like WorldCom, Arthur Andersen, and Enron. But the Republican leadership has used this power to protect corporate criminals, killing the Conyers- Delahunt amendment on retroactivity last night in the Committee on Rules so they would not have to debate it in the light of day on the House floor.
Mr. Speaker, there are other major problems with the Republican bill. Its operating principle is: Justice delayed is justice denied. State and Federal judiciaries, including the Chief Justice of the Supreme Court, William Rehnquist, oppose it. And because the Federal courts are already overburdened, consumers will have to wait for years for their claims to be heard. In the meantime, big corporate wrongdoers like WorldCom and Enron will have new procedural tactics to run up the bills and run out the clock on the consumers they have injured.
At the same time, the so-called consumer protection provisions of the bill are a cynical sham. They do not provide any new protections for consumers, they just codify the ones that already exist, and they do not come close to making up for the fundamental lack on consumer rights that the entire bill represents.
I am sure the Republicans will come to the floor to complain about the so-called coupon settlements which are no more common in State courts than they are in Federal courts that Republicans favor. No matter how many times Republicans talk about this problem, their bill does not do anything about it. Only the Democratic alternative increases consumer protections against coupon settlements.
The truth is the Democratic alternative offered by the gentleman from Michigan (Mr. Conyers) and the gentleman from Texas (Mr. Sandlin) is the only sensible and workable class action reform on the House floor today. It will help consumers hold corporations accountable for their actions, and it will help courts manage large class action litigation. It tightens the rules on lawyers' fees and coupon settlements. It protects consumers against unfair settlements and enacts other consumer-friendly revisions that have been recommended by the Judicial Conference of the United States. And to protect the rights of out-of- State defendants, it establishes a State level multidistrict litigation panel, like those operating on the Federal level, to manage large class action suits filed in multiple jurisdictions.
So I urge my colleagues to support the Democratic alternative. But first I urge my Republican friends to stand up to the Republican leadership and oppose the previous question. If we defeat the previous question, then the House can consider the Conyers-Delahunt amendment to strike the retroactive provisions of this bill, and it also can consider another very important amendment on the provisions that permit lawsuits to be frozen in place. This is the only way we can block welfare for corporate wrongdoers like Enron and WorldCom.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself 1 minute.
Of course, I just heard the comments by my friend, the chairman of the Committee on Rules; and my only point was in the last Congress, both times this came up, the last Congress and the Congress preceding, all amendments that were filed we permitted to be made in order. This time the majority has cherry-picked and said, well, we will have these couple of amendments made in order, but the ones that are really important, we are not going to let those be made in order.
Also, I would like to read from the hometown newspaper of my good friend, the gentlewoman from Ohio, who is managing the bill. This is an editorial that appeared in the Columbus Dispatch May 8, 2003: ``Courts have the power to police such abuses, and proponents of the bill have not shown that abuses are widespread or that the courts have failed such that the Congress needs to step in. If there are problems that require a legislative solution, the solution should be one that is carefully tailored, not the blunt instrument of this bill.''
Mr. Speaker, I yield 3 minutes to the gentleman from Massachusetts (Mr. McGovern), a member of the Committee on Rules.
Mr. Speaker, I yield 5 minutes to the gentleman from Virginia (Mr. Scott), a member of the Committee on the Judiciary.
Mr. Speaker, I yield 7 minutes to the gentleman from Massachusetts (Mr. Delahunt), a member of the Committee on the Judiciary.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, does the gentlewoman have one speaker, and then will she close after that?
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I have been listening to the great crocodile tears shed on the other side on the issue of coupon settlement proposition. Of course, if they want to change that, they should support the Democratic substitute which is stronger on the issue of coupon settlements than their underlying bill.
Also, it is fascinating to listen to the advocates of States rights on the other side suddenly shift gears and become advocates of a very strong Federal system. I guess there is just a fundamental distrust of our State court system on the part of Republicans, and I find that very curious and very interesting. Also, particularly in light of the fact that the Chief Justice of the Supreme Court of the United States is opposed to dumping these additional lawsuits into the already overburdened Federal system.
So we just have a peculiar situation in which people on the other side of the aisle are disregarding the Chief Justice of the United States, a member of their own party, and are also suddenly, in this particular instance, advocating for stronger action by the Federal system which would override the State system that they normally support.
Mr. Speaker, I urge Members to vote no on the previous question. Last night the Committee on Rules broke with its past precedents and refused to make in order two important amendments Democratic Members brought to the committee.
If the previous question is defeated, I will offer an amendment to the rule that will restore fairness in the debate on class action reform that the House has adopted in the previous two Congresses. Under my proposal, the House will be allowed to debate one amendment by the gentleman from Michigan (Mr. Conyers) and the gentleman from Massachusetts (Mr. Delahunt) that will delete the bill's retroactive provisions; and, two, the Delahunt-Scott amendment to prevent corporations from using interlocutory appeals to run out the clock on class action lawsuits.
No matter what their position is on this bill or on these particular amendments, all Members should support bringing fairness back to the process and vote no on the previous question.
I am merely asking that all Members with serious amendments be allowed to bring them to the House floor just as they have been able to on the earlier occasions when we have debated class action reform.
Let me make it very clear. A no vote would not stop the House from taking up the Class Action Fairness Act and would not prevent any of the amendments made in order by the rule from being offered. However, a yes vote will preclude the House from considering these two very important amendments that are critical to the debate on class action lawsuits.
Mr. Speaker, I ask unanimous consent to insert the text of the amendments immediately prior to the vote on the previous question.
Mr. Speaker, again, vote no on the previous question.
Mr. Speaker, I yield back the balance of my time.
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.
Mr. Speaker, I demand a recorded vote.