Class Action Fairness Act of 2005
A law intended to prevent abuses associated with class action lawsuits. The
Act places class action cases under federal jurisdiction (previously, such cases
were within the jurisdiction of state courts), provided the amount at issue
is greater than $5 million. The Act also makes it more difficult for plaintiffs
to go "forum shopping" in search of jurisdictions known for class action lawsuit
abuses. Another important provision within the Act contains procedures for judicial
review of attorneys' fees, which are often excessive relative to the recoveries
received by plaintiffs. Opponents of the Act have asserted that these changes
will deny aggrieved persons their day in court by making it much more difficult
to bring class action suits and that taking such cases out of state court jurisdiction
will clog the federal courts' dockets.