HR 985 Seeks to Retroactively Eliminate Class Action Lawsuits

The U.S. House of Representatives passed H.R. 985, a bill that would effectively eliminate class action lawsuits and, devastatingly, work retroactively to affect pending class actions.

The bill passed with a bare margin of 19 Republican votes. It was then amended and tacked on to an asbestos bill and renamed the “Fairness in Class Action Litigation and Furthering Asbestos Claim Transparency Act of 2017.” The bill is pending in the Senate.

Proponents of the Republican backed bill H.R. 985 claim that the process for class action lawsuits is “broken”; however, 14 Republican House representatives broke the party line to vote against the bill. According to some sources, the bill will face stiff opposition when it hits the senate floor, including the possibility of a filibuster.

The bill was “fast-tracked” by the House of Representatives, meaning it received no public hearings. The bill, if passed, will create almost insurmountable hurdles for citizens to bring class actions against companies to hold them accountable for misconduct.

Class actions are an important tool for civic engagement and to hold companies responsible for fraud, negligence, and other violations of the rights of customers. Under the bill, it would have been impossible for the communities affected by the Deepwater Horizon oil spill to recover damages from the companies responsible for destroying their environment and related economic enterprises.

Millions of consumers who are hit with unfair bank fees, lose their security through pension mismanagement, and who are injured by product design defects will have no recourse if H.R. 985 is passed. Also affected are civil rights actions. Cases like Brown v. Board of Education would not have occurred under H.R. 985.  Additionally, important securities protections that shield normal people from the greed of Wall Street and big banking would be lost to the chilling legislation.

In March, a letter endorsed by 123 civil rights organizations was sent to Speaker Paul Ryan and Leader Nancy Pelosi opposing the bill. The letter states “These serious issues warrant, at a minimum, careful consideration and public hearings. A rush to pass such far-reaching and flawed legislation will deny access to justice for many and undermine the rule of law.”

Proponents of the bill, including representative Bob Goodlatte, a Republican from Virginia, have shied away from explaining the bill to the public. The bill is backed by the biggest lobbying group in the United States – the U.S. Chamber of Commerce.

Although the bill contains “fairness in class action litigation” in its title, the bill is far from fair. It presents a confusing array of regulations that only work to make it harder for common citizens to seek redress using the courts. For example, courts are instructed to toss years of precedent regarding Class certification, and told to only certify a Class after “rigorous analysis,” with no description of what that analysis entails.

The bill does not allow attorneys to represent present or former clients; this will have a chilling effect on clients who bring pension or securities lawsuits.

Settlements will even be stalled by a requirement under H.R. 985 for federal courts to review proposed payment plans and to audit every payment distribution.

What Can I Do to Stop H.R. 985 From Passing?

If you want to see Consumer Rights protected, contact your state’s U.S. Senators today and tell them to vote NO on H.R. 985, the Fairness in Class Action Litigation Act of 2017. Your senators can be reached by calling the Capitol Switchboard at (202) 224-3121 and asking the operator to connect you with their offices.

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