Congressmen Reintroduce Class-Action Reform Bill.

Two congressmen have introduced class-action reform legislation that would move multistate lawsuits from state courts into federal courts.

The Class Action Fairness Act of 2001 was introduced June 27 by Reps. Bob Goodlatte, R-Va., and Rick Boucher, D-Va., and has the support of insurance associations.

The bill corrects "a serious flaw" in federal jurisdiction statutes, Goodlatte said in a statement. Currently, those statutes forbid federal courts from hearing interstate class actions -- "the lawsuits that involve more money and touch more Americans than virtually any other litigation pending in the American system," he said.

The House approved a similar bill last year. This gives hope that the bill will get quick approval this year.

A similar bill has been introduced in the Senate. Sens. Herb Kohl, D-Wis., and Orrin Hatch, R-Utah, are working on a bill that differs slightly from the House version, said Melissa Shelk of the American Insurance Association. "The largest difference is a provision to notify appropriate officials of class-action settlements," Shelk said.

Both the House and Senate bills have good prospects for passage, but there is the chance of a filibuster in the Senate, said Carl Parks of the National Association of Independent Insurers.