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Bush signs act that restricts class action suits in state courts
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     President George Bush has signed the controversial Class Action Fairness Act of 2005, which limits eligibility for filing class action suits in state courts, saying the act is a "critical step toward ending the lawsuit culture in our country."

    President Bush signs Class Action Fairness Act in the White House

    Credit: EVAN VUCCI/AP

    At the signing ceremony, President Bush charged that "junk lawsuits" caused small businesses to "close their doors for good." He said that such lawsuits forced up the total cost of the US tort system "to more than $240bn a year" and that medical liability lawsuits were "driving up the cost for doctors and patients and entrepreneurs around the country."

    But critics say the costs cited by President Bush are exaggerated and that the act will make it harder to hold corporations responsible for wrongdoing.

    Joanne Doroshow, attorney and founder of the Center for Justice and Democracy, told the BMJ, "The $240bn figure misleading... The cost of malpractice—both claims and premiums—is each less than 1% of total healthcare costs. Total payouts are about $6bn—less than we pay for dog and cat food."

    Under the act, many cases previously eligible for state courts will be forced into federal courts. But critics say that moving class action suits into overburdened federal courts will create unfair obstacles for plaintiffs. Federal courts generally take longer to hear cases and are also widely considered to be less likely to approve (certify) class action cases for adjudication.

    A recent review of 43 class action cases by Public Citizen, a non-profit public interest group based in Washington, DC, found that state courts certified 11 of 17 cases while federal courts certified only 9 of 26 cases.

    The act was supported by, among others, the American Tort Reform Association, which represents tobacco companies; the American Medical Association; Johnson & Johnson; Pfizer; and Wyeth.

    "We applaud the House and Senate for its strong bipartisan support for this important legislation," said Sherman Joyce, the president of the American Tort Reform Association.

    Jeffrey Kaplan of ReclaimDemocracy.org, a non-profit group that seeks to restore "citizen authority over corporations," told the BMJ that the act is burdensome not only to individual plaintiffs but to society as a whole. "What is the cost to society if 10 000 people are forced to hire 10 000 lawyers? By shifting to federal courts, they are looking to close off people's ability to sue."

    Disclosure could be another victim of the act, Ms Doroshow told the Multinational Monitor, a monthly magazine in Washington, DC.(Jeanne Lenzer)