What Does Class Action Fairness Act of 2005 Mean?

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What does Class Action Fairness Act of 2005 mean? Read on to discover the definition & meaning of the term Class Action Fairness Act of 2005 - to help you better understand the language used in insurance policies.

Class Action Fairness Act of 2005

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.

We hope the you have a better understanding of the meaning of Class Action Fairness Act of 2005.

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