HR 1115 - Class Action Fairness Act of 2003

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

IntroducedMar 6, 2003
Passed HouseJun 12, 2003
Passed SenateNot reached
To the PresidentNot reached
Became lawNot reached

Summary

Class Action Fairness Act of 2003 - (Sec. 3) Amends the Federal judicial code to prohibit a Federal district court from approving a proposed class action settlement under which: (1) members would receive non-cash benefits or would be required to expend funds in order to obtain proposed benefits unless the court finds, after a hearing, that the settlement is fair, reasonable, and adequate; (2) any member is obligated to pay sums to class counsel that would result in a net loss to the member unless the court finds that non-monetary benefits to the member outweigh the monetary loss; (3) greater sums would be paid to some class members than to others solely on the basis of their closer geographic proximity to the court; or (4) a greater share would be paid to a class representative than to other class members (with an exception for any court approved payment for reasonable time or costs for fulfilling representative obligations).

(Sec. 4) Grants Federal district courts original jurisdiction of any civil action in which the matter in controversy exceeds $5 million, exclusive of interest and costs, and is a class action in which any member of a class of plaintiffs is: (1) a citizen of a State different from any defendant; (2) a foreign state or a citizen or subject of a foreign state and any defendant is a citizen of a State; or (3) a citizen of a State and any defendant is a foreign state or a citizen or subject of a foreign state.

Authorizes a district court to decline to exercise jurisdiction over a class action in which greater than one-third but less than two-thirds of the members of all proposed plaintiff classes in the aggregate and the primary defendants are citizens of the State in which the action was originally filed, based on consideration of whether: (1) the claims asserted involve matters of national or interstate interest; (2) the claims asserted will be governed by laws other than those of the State in which the action was originally filed; (3) in the case of a class action originally filed in a State court, the class action has been pleaded in a manner that seeks to avoid Federal jurisdiction; (4) the number of citizens of the State in which the action was originally filed in all proposed plaintiff classes in the aggregate is substantially larger than the number of citizens from any other State, and the citizenship of the other members of the proposed class is dispersed among a substantial number of States; and (5) one or more class actions asserting the same or similar claims on behalf of the same or other persons have been or may be filed.

Makes exceptions where: (1) two-thirds or more of the members of all proposed plaintiff classes in the aggregate and the primary defendants are citizens of the State in which the action was originally filed; (2) the primary defendants are States, State officials, or other governmental entities against whom the district court may be foreclosed from ordering relief; or (3) the number of members of all proposed plaintiff classes in the aggregate is less than 100. Lists other exceptions, including class actions involving certain securities claims and claims involving the internal affairs or governance of a corporation that arise under the laws of the State of incorporation.

(Sec. 5) Sets forth provisions governing the removal of interstate class actions to U.S. district court. Permits removal by: (1) any defendant without the consent of all defendants; or (2) any plaintiff class member who is not a named or representative class member without the consent of all class members (after a class certification order has been entered). Provides for review by appeal of orders remanding class actions to State courts.

(Sec. 6) Grants the courts of appeals jurisdiction for appeals of U.S. district court orders granting or denying class certification if notice of appeal is filed within ten days after entry of the order.

(Sec. 7) Directs that the amendments to rule 23 of the Federal Rules of Civil Procedure by the order entered by the U.S. Supreme Court on March 27, 2003 (pertaining to the manner in which Federal courts handle class actions, including a requirement that class certification notices to class members present specified information in plain, easily understood language) take effect on the date of this Act's enactment or on December 1, 2003, whichever occurs first.

(Sec. 8) Makes this Act applicable to any civil action commenced: (1) on or after this Act's enactment date; and (2) before such date if a class certification order is entered on or after such date.

Recorded votes 5

Newest first. Open one to see how every member voted.

Roll call	Question	Result	Date
House 272	On Passage	Passed253–170	Jun 12, 2003

House 271	On Motion to Recommit with Instructions	Failed185–240	Jun 12, 2003

House 270	On Agreeing to the Amendment	Failed170–255	Jun 12, 2003

House 269	On Agreeing to the Amendment	Failed186–234	Jun 12, 2003

House 268	On Agreeing to the Amendment	Failed185–238	Jun 12, 2003

Cosponsors 50

Members who signed on, in the order they did. Signatures ran from Mar 6, 2003 to Jun 9, 2003; 11 are original cosponsors, there from the day it was introduced.

Seat	Cosponsor		Signed on
D-CA	Calvin M. Dooley	Original	Mar 6, 2003
D-TX	Charles W. Stenholm	Original	Mar 6, 2003
R-CA	Christopher Cox	Original	Mar 6, 2003
R-WI	F. James Sensenbrenner, Jr.	Original	Mar 6, 2003
R-IL	Henry J. Hyde	Original	Mar 6, 2003
D-VA	James P. Moran	Original	Mar 6, 2003
R-TX	Lamar Smith	Original	Mar 6, 2003
D-VA	Rick Boucher	Original	Mar 6, 2003
D-AL	Robert E. (Bud) Cramer Jr.	Original	Mar 6, 2003
D-PA	Tim Holden	Original	Mar 6, 2003
R-TX	Tom DeLay	Original	Mar 6, 2003
R-MI	Mike Rogers		Mar 12, 2003
R-AZ	Jeff Flake		Mar 20, 2003
D-IL	Rahm Emanuel		Mar 27, 2003
R-CT	Christopher Shays		Apr 2, 2003
R-IN	John N. Hostettler		Apr 9, 2003
D-GA	David Scott		Apr 10, 2003
R-IN	Chris Chocola		Apr 11, 2003
R-KY	Anne M. Northup		May 9, 2003
R-NY	John M. McHugh		May 9, 2003
R-OH	Steve Chabot		May 9, 2003
R-UT	Chris Cannon		May 13, 2003
R-NC	Howard Coble		May 13, 2003
R-PA	Melissa A. Hart		May 13, 2003
R-CA	Randy (Duke) Cunningham		May 13, 2003
R-SC	J. Gresham Barrett		May 15, 2003
R-LA	Richard H. Baker		May 19, 2003
R-FL	Tom Feeney		May 19, 2003
R-CA	Elton Gallegly		May 21, 2003
R-VA	J. Randy Forbes		May 21, 2003
R-IN	Mike Pence		May 21, 2003
R-FL	Ric Keller		May 21, 2003
R-FL	Jeff Miller		Jun 2, 2003
R-TX	Michael C. Burgess		Jun 2, 2003
R-NH	Jeb Bradley		Jun 4, 2003
R-MS	Roger F. Wicker		Jun 4, 2003
R-VA	Virgil H. Goode Jr.		Jun 4, 2003
R-FL	Adam H. Putnam		Jun 9, 2003
R-VA	Edward L. Schrock		Jun 9, 2003
R-TX	Jeb Hensarling		Jun 9, 2003
R-SC	Jim DeMint		Jun 9, 2003
R-FL	John L. Mica		Jun 9, 2003
R-OK	John Sullivan		Jun 9, 2003
R-IL	Judy Biggert		Jun 9, 2003
R-CA	Ken Calvert		Jun 9, 2003
R-IN	Mark E. Souder		Jun 9, 2003
R-MN	Mark R. Kennedy		Jun 9, 2003
R-TX	Pete Sessions		Jun 9, 2003
R-NE	Tom Osborne		Jun 9, 2003
R-AZ	Trent Franks		Jun 9, 2003

Committees 2

Where it was sent and what each committee and subcommittee did with it, in order.

Chamber	Committee	What it did
House	Judiciary Committee	Referred Mar 6, 2003Hearings May 15, 2003Markup May 21, 2003Reported Jun 9, 2003
Senate	Judiciary Committee	Referred Jun 12, 2003

Actions 33

Everything that happened, newest first.

Jun 12, 2003Rule H. Res. 269 passed House.
Jun 12, 2003Considered under the provisions of rule H. Res. 269. (consideration: CR H5271-5307)
Jun 12, 2003Rule provides for consideration of H.R. 1115 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute recommended by the Committee on the Judiciary now printed in the bill. Measure will be considered read. Specified amendments are in order.
Jun 12, 2003House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 269 and Rule XXIII.
Jun 12, 2003The Speaker designated the Honorable Steven C. LaTourette to act as Chairman of the Committee.

Show all 33 actions

In the Congressional Record 5

Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.

Where	In the Record	Members	Date
Extensions	Debate and remarks E1281	Tom Udall D-NM	Jun 17, 2003
House	Debate and remarks H5271–H5280, H5281–H5307, H5348Text printed H5271, H5292–H5294Amendments H5278, H5294, H5296, H5297, H5299Motions H5305Recorded votes H5279, H5303, H5304, H5306, H5307consideration (H. Res. 269), previous questionenactJackson Lee amendment (prevent domestic corporations from escaping liability from class action lawsuits through repatriation or merging with a foreign corporation)Sandlin amendment (substitute)Weiner motion to recommit (change effective date and repeal mandatory appeal of class action certification orders)	Anthony D. Weiner D-NY (motion), Bill Delahunt D-MA, Bob Goodlatte R-VA, Calvin M. Dooley D-CA, Charles W. Stenholm D-TX, David Dreier R-CA, Deborah Pryce R-OH, Earl Blumenauer D-OR, Earl Pomeroy D-ND, F. James Sensenbrenner, Jr. R-WI (amendment), Fortney Pete Stark D-CA, Hilda L. Solis D-CA, James P. McGovern D-MA, James P. Moran D-VA, Janice D. Schakowsky D-IL, Jay Inslee D-WA, Jeb Hensarling R-TX, Joe Baca D-CA, John Conyers, Jr. D-MI, John Linder R-GA, John Sullivan R-OK, Lamar Smith R-TX, Linda T. Sánchez D-CA, Marsha Blackburn R-TN, Martin Frost D-TX, Max Sandlin D-TX (amendment), Maxine Waters D-CA, Melissa A. Hart R-PA, Melvin L. Watt D-NC, Rick Boucher D-VA, Robert C. "Bobby" Scott D-VA, Roy Blunt R-MO, Sheila Jackson Lee D-TX (amendment), Steny H. Hoyer D-MD, Stephanie Tubbs Jones D-OH, Steve Chabot R-OH, Steve King R-IA, Tom Feeney R-FL, Wm. Lacy Clay D-MO, Zoe Lofgren D-CA (amendment)	Jun 12, 2003
House	Debate and remarks H5097	Tom DeLay R-TX	Jun 10, 2003
House	Debate and remarks H5031	David Dreier R-CA	Jun 5, 2003
Extensions	Debate and remarks E405	Bob Goodlatte R-VA	Mar 7, 2003

Research

What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.

Committee report

H. Rept. 108-144

Congressional Budget Office cost estimates 2

Jun 2, 2003H.R. 1115, Class Action Fairness Act of 2003<p>Cost estimate for the bill as ordered reported by the House Committee on the Judiciary on May 21, 2003</p>
Jun 2, 2003H.R. 1115, Class Action Fairness Act of 2003Cost estimate for the bill as ordered reported by the House Committee on the Judiciary on May 21, 2003

Amendments 5

Amendments offered to this bill.

Amendment	Description	Offered by	Status
HAmdt 166	Amendment in the nature of a substitute.	Judiciary Committee	On agreeing to the Judiciary amendment (A001) Agreed to without objection.
HAmdt 167	An amendment numbered 1 printed in House Report 108-148, to slightly broaden the category of class action cases that would remain in state court in two ways. First, this amendment raises the aggregate amount in controversy required for federal court jurisdiction from $2 million to $5 million. Second, it allow federal courts discretion to return intrastate class actions in which local law governs to state courts after weighing five factors to determine if the case is appropriately of a local character. This discretion would come into play when between one-third and two-thirds of the plaintiffs are citizens of the same state as the primary defendants. If less than one-third are citizens of the same state, the case would automatically be eligible for federal court jurisdiction under the new diversity rules in this bill. Likewise, if more than two-thirds are citizens of the same state, the case would not be subject to the new rules in this bill and would remain in state court.	F. James Sensenbrenner, Jr. R-WI	On agreeing to the Sensenbrenner amendment (A002) Agreed to by voice vote.
HAmdt 168	An amendment numbered 2 printed in House Report 108-148 to prevent domestic corporations from not being subject to the jurisdiction of U.S. Federal Courts, and liability in class action lawsuits filed in Federal Courts, through mergers or repatriations with foreign companies.	Sheila Jackson Lee D-TX	On agreeing to the Jackson-Lee (TX) amendment (A003) Failed by recorded vote: 185 - 238 (Roll no. 268).
HAmdt 169	An amendment numbered 3 printed in House Report 108-148 to preserve the ability of local prosecutors to enforce state antitrust and consumer protection laws in state courts.	Zoe Lofgren D-CA	On agreeing to the Lofgren amendment (A004) Failed by recorded vote: 186 - 234 (Roll no. 269).
HAmdt 170	An amendment in the nature of a substitute numbered 4 printed in House Report 108-148. Section 1 of the amendment contains a short title, reference, and table of contents. Section 2 establishes improved procedures for certain class actions, including provisions for the use of coupon settlements, court approval of settlements, sealing of class action documents, and interlocutory appeals. Section 3 enacts the recommendations of the U. S. Judicial Conference with respect to notice to class members. Section 4 establishes a state court multi-district litigation panel for class actions. The panel allows for the consolidation of class actions pending in different state courts for pretrial proceedings. Section 5 of the amendment authorizes the National Center for State Courts to develop and implement a procedure by which state courts or the state court multi-district litigation panel may transfer certain class actions to federal courts.	Max Sandlin D-TX	On agreeing to the Sandlin amendment (A005) Failed by recorded vote: 170 - 255 (Roll no. 270).

Related bills 4

Companion bills and other measures the record links to this one.

Bill	Title	Relationship	Latest action
HRES 269	Providing for consideration of the bill (H.R. 1115) to amend the procedures that apply to consideration of interstate class actions to assure fairer outcomes for class members and defendants, to outlaw certain practices that provide inadequate settlements for class members, to assure that attorneys do not receive a disproportionate amount of settlements at the expense of class members, to provide for clearer and simpler information in class action settlement notices, to assure prompt consideration of interstate class actions, to amend title 28, United States Code, to allow the application of the principles of Federal diversity jurisdiction to interstate class actions, and for other purposes.	Procedurally related	Jun 12, 2003
S 274	Class Action Fairness Act of 2003	Related bill	Jul 31, 2003
S 1751	Class Action Fairness Act of 2003	Related bill	Oct 22, 2003
S 2062	Class Action Fairness Act of 2004	Related bill	Jul 8, 2004

Titles 4

Every title it has carried, official and short, at each stage.

Official Title as Introduced: To amend the procedures that apply to consideration of interstate class actions to assure fairer outcomes for class members and defendants, to outlaw certain practices that provide inadequate settlements for class members, to assure that attorneys do not receive a disproportionate amount of settlements at the expense of class members, to provide for clearer and simpler information in class action settlement notices, to assure prompt consideration of interstate class actions, to amend title 28, United States Code, to allow the application of the principles of Federal diversity jurisdiction to interstate class actions, and for other purposes.
Short Titles as Introduced: Class Action Fairness Act of 2003
Short Titles as Reported to House: Class Action Fairness Act of 2003
Short Titles as Passed House: Class Action Fairness Act of 2003

Subjects

Assigned by the Library of Congress. Policy area: Law.

Text 4

Each version as it was printed, newest first.

Jun 12, 2003Referred in Senate
Jun 12, 2003Engrossed in House
Jun 9, 2003Reported in House
Mar 6, 2003Introduced in House

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