Senate to debate tort reform

ASSOCIATED PRESS

The Republican-controlled Senate yesterday began a new effort to restrict class-action lawsuits that they contend are little more than get-rich schemes for trial lawyers.

The Senate action came as Democratic presidential contender Sen. John Kerry picked the Senate’s best-known former trial lawyer, John Edwards of North Carolina, to be his running mate.

Debate on the Class Action Fairness Act was scheduled before Mr. Kerry announced or scheduled his choice.

Senate Majority Leader Bill Frist, Tennessee Republican, said the bill would not become a vehicle to attack Mr. Edwards, who has opposed legislation limiting rights to take businesses to court.

“I see no connection with the vice-presidential nomination,” he said.

The legislation would shift some class-action lawsuits from state to federal courts, discouraging lawyers from seeking out-of-state courts with reputations for agreeing to huge damage awards. Federal courts tend to accept fewer cases and grant smaller rewards.

“Many of these class-action cases are just frivolous lawsuits that are cooked up by lawyers to make a quick buck with little benefit to class members that the lawyers are supposed to be representing,” said Sen. Charles E. Grassley, Iowa Republican and the bill’s chief sponsor, at the opening of what could be more than a week of debate.

The Class Action Fairness Coalition, a group of business organizations, cited a case over faulty TV sets that resulted in plaintiffs’ getting a $25 to $50 rebate on future purchases while attorneys took home $22 million.

Senate Minority Leader Tom Daschle, South Dakota Democrat, called the bill “one of the worst anti-consumer pieces of legislation that we will see in this Congress,” because it would help businesses escape judgments for wrongdoing.

Sally Greenberg, senior counsel for the Consumers Union, called the bill “a radical effort by the corporate community to restructure the court system to an environment they think is going to be better for them.”

The legislation also gives both parties a chance to air their political priorities a few weeks before the presidential conventions.

Sen. Edward M. Kennedy, Massachusetts Democrat, plans to offer an amendment that would raise the minimum wage from $5.15 an hour to $7 an hour over several years.

Despite Mr. Frist’s admonition, the career of Mr. Edwards, who made millions of dollars in lawsuit fees, is certain to be part of the debate.

“I expect Senator Edwards will now be away much of the time campaigning,” said Sen. Wayne Allard, Colorado Republican. “From the perspective of a small-business man, I am hopeful that one less trial lawyer present and voting in the Senate will mean that we can finally make some progress on issues that matter to the American people, such as permanent tax reduction and tort reform.”