Letter to Senators Warner and Allen re: Class Action Reform

May 14, 2004 Letter to Senators Warner and Allen


James Landrith
PO Box 8208
Alexandria, VA 22306-8208

May 14, 2004

The Honorable John William Warner
United States Senate
225 Russell Senate Office Building
Washington, DC 20510-4601

The Honorable George F. Allen
United States Senate
204 Russell Senate Office Building
Washington, DC 20510-4604

Dear Senators Warner and Allen:

I am writing to urge you to support S. 2062, the “Class Action Fairness Act of 2004.” This is an important piece of bi-partisan legislation that would limit certain abusive practices concerning class action lawsuits filed in state courts.

As a customer of Chevy Chase Bank, a community bank with many branches in Virginia, I am aware that community bankers are frequent targets of an aggressive plaintiffs’ bar, and this legislation represents an important reform step to help fight the economically damaging impact of such abusive lawsuits.

Please vote in support of S. 2062 and help turn back the economically devastating costs of these abusive lawsuits.

Sincerely,

James Landrith

One comment

  1. June 21, 2004

    Mr. James Landrith
    P.O. Box 8208
    Alexandria, Virginia 22306-8208

    Dear Mr. Landrith:

    Thank you for contacting my office to express your thoughts about tort reform. I appreciate your thoughtful inquiry.

    I agree with many Virginians who have contacted me to express their support for some measure of tort reform. The Congress is currently considering several initiatives.

    Senator Charles Grassley (R-LA) introduced S. 1751, the Class Action Faimess Act. Senator Grassley later introduced $.2062, an updated version of $.1751, and further action on the bill is pending in the Senate. This legislation would require: (1) that notices to class members be written in clearly understood English, (2) judicial scrutiny of settlements in which class members receive minimal benefits or actually incur losses, (3) a prohibition against providing for greater payments to class members because they are located in closer geographic proximity to the court, (4) prompt consideration of interstate class actions, and (5) application of the principles of federal diversity jurisdiction to interstate class actions.
    This legislation makes it easier for class action suits to be tried in federal court, rather than in state courts. Unfortunately, opponents of this legislation have successfully used procedural maneuvers in the Senate to prevent the Senate from proceeding to consideration of this important legislation.

    In the House of Representatives, Representative Bob Goodlatte (R-VA) introduced the House version of the Class Action Fairness Act, H.R.1115. The House passed this bill by a vote of 253 to 170 on June 12, 2003, and further consideration is pending in the Senate.

    Congress is also considering ways to help limit unnecessary lawsuits in the medical field. As you know, medical malpractice insurance premiums have escalated rapidly in many parts of the country. Although increases in medical malpractice insurance premiums have averaged 15% to 20% during the past two years, in some states providers are facing increases of 50% and higher. As a result of unaffordable malpractice rates, many medical providers are leaving the practice of medicine.

    In my view, true victims of medical malpractice deserve to be fairly compensated for their injuries. However, lawsuits that have little or no merit, and lawsuits with runaway financial awards, have contributed to a crisis in the medical community. With medical providers, particularly specialists, leaving the practice of medicine as a result of the high costs of malpractice insurance, access to medical care is increasingly in jeopardy. Accordingly, I have been supportive of balanced efforts to reform our medical malpractice laws, and I have in fact introduced my own amendment on this matter, S.Amdt. 2624.

    Unfortunately, opponents of my amendment prevented it from receiving a vote in the Senate. Nevertheless, I will continue to work to reform our medical malpractice laws.

    Please be assured that I am aware of your opinion and will keep it in mind should legislation concerning tort reform come before the full Senate.

    Again, thank you for giving me the benefit of you views.

    With kind regards, I am

    Sincerely,

    John Warner

    JW/jsf

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