Home > Glossary

Class Action Fairness Act Of 2005

Definition

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.

Register for Personal Lines CE Courses
Register for Commercial Lines CE Courses
Prelicense.com

Navigation

Social Media

User ID: Subscriber Status:Free