Class Action Fairness Act of 2005

Class Action Fairness Act of 2005

Long title	An Act to amend the procedures that apply to consideration of interstate class actions to assure fairer outcomes for class members and defendants, and for other purposes.
Enacted by	the 109th United States Congress
Citations
Public law	Pub. L. 109–2 (text) (PDF)
Statutes at Large	119 Stat. 4–14
Legislative history
Introduced in the Senate as S. 5 by Chuck Grassley (R–IA) on January 25, 2005 Committee consideration by Senate Judiciary Passed the Senate on February 10, 2005 (72–26) Passed the House on February 17, 2005 (279-149) Signed into law by President George W. Bush on February 18, 2005

The U.S. Class Action Fairness Act of 2005, 28 U.S.C. §§ 1332(d), 1453, 1711–15, expanded federal subject-matter jurisdiction over many large class action lawsuits and mass actions in the United States.

The bill was the first major piece of legislation of the second term of the Bush Administration. Business groups and tort reform supporters had lobbied for the legislation, arguing that it was needed to prevent class action abuse.^[1] President George W. Bush had vowed to support this legislation.

The Act permits federal courts to preside over certain class actions in diversity jurisdiction where the aggregate amount in controversy exceeds $5 million; where the class comprises at least 100 plaintiffs; and where there is at least "minimal diversity" between the parties (i.e., at least one plaintiff class member is diverse from at least one defendant). The court, however, may decline jurisdiction under certain circumstances and is required to decline jurisdiction in others. The Act also directs the courts to give greater scrutiny to class action settlements, especially those involving corporations.