By James Rowley
Feb. 3 (Bloomberg) -- A bill to move most class-action consumer lawsuits against companies from state to federal courts was approved 13-5 by a U.S. Senate committee.
The full Senate plans to begin debate on the measure next week, said Pennsylvania Republican Arlen Specter, chairman of the Judiciary Committee. Under an agreement between House and Senate Republican leaders, the House would consider the Senate bill if it is passed without any amendments.
The Senate Judiciary Committee's 10 Republicans were joined today by three Democrats in approving the bill. It is designed to bar trial lawyers from filing lawsuits in local courts where judges and juries have reputations for being sympathetic to plaintiffs and hostile to companies.
Such courts provide ``jackpot justice'' to trial lawyers, said Utah Republican Orrin Hatch. ``As a general rule, you don't have jackpot justice in federal courts.''
Democrats argued that the bill was designed to make it harder for consumers to press claims of corporate wrongdoing by forcing the biggest lawsuits to federal court where rules for approving class-action cases are stricter.
``It will leave many injured parties who have valid claims with no avenue for relief,'' said Vermont Senator Patrick Leahy, the panel's top Democrat.
The bill is supported by a coalition of companies, including Ford Motor Co. and Intel Corp., and the U.S. Chamber of Commerce. Democrats, who blocked a Senate vote on the measure last year, won't try to thwart a vote this year, said assistant Democratic leader Dick Durbin of Illinois. Instead, Democrats will attempt to attach amendments during the Senate debate.
Democrats Dianne Feinstein of California, Herb Kohl of Wisconsin and Charles Schumer of New York voted for the bill.
To contact the reporter on this story: James Rowley in Washington jarowley@bloomberg.net
Last Updated: February 3, 2005 12:38 EST
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