HOUSE JOINT MEMORIAL 46

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Teresa A. Zanetti

A JOINT MEMORIAL

REQUESTING CONGRESS TO REFORM THE CURRENT CLASS ACTION LAWSUIT PROCESS IN ORDER TO ENSURE FAIR LEGAL PROCESS FOR CLASS MEMBERS WITH LEGITIMATE CLAIMS AND PROTECT RESPONSIBLE COMPANIES AND OTHER INSTITUTIONS AGAINST FRIVOLOUS INTERSTATE CLASS ACTIONS IN STATE COURTS.

     WHEREAS, over the past decade, there have been abuses of the class action device that have harmed class members with legitimate claims and defendants that have acted responsibly, adversely affected interstate commerce and undermined public respect for the judicial system in the United States; and

     WHEREAS, class members have been harmed by a number of plaintiffs' lawyers' actions, which provide little or no benefit to class members as a whole; and

     WHEREAS, among those harmful actions is the collection of large fees by plaintiffs' lawyers, while class members are left with coupons or other awards of little or no value and while unjustified rewards are made to certain plaintiffs at the expense of other class members; and

     WHEREAS, abusive interstate class actions have harmed society as a whole by forcing innocent parties to settle cases rather than risk a huge judgment by a local jury, thereby costing consumers billions of dollars in increased costs to pay for forced settlements and excessive judgments; and

     WHEREAS, through the use of artful pleading, plaintiffs are able to avoid litigating class actions in federal court, forcing businesses and other organizations to defend interstate class action lawsuits in county and state courts where the lawyers, rather than the claimants, are likely to receive the maximum benefit;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that congress be requested to approve class action reform legislation that ensures fair and prompt recoveries for class members with legitimate claims, protects responsible companies and other institutions against interstate class actions in state courts and restores the intent of the framers of the United States constitution by providing for federal court consideration of interstate class actions; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the members of the New Mexico congressional delegation.

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