Ill. Panel Examines Class Action Curbs

By E.E. Mazier

NU Online News Service, Sept. 6, 12:25 p.m.EST? An Illinois legislative panel is due to beginhearings this afternoon on a proposal to tighten requirements forclass action lawsuits in the state.

The Senate Judiciary Subcommittee session is being held at 1p.m. CST on the Southern Illinois University campus atEdwardsville, Ill., in Madison County, which is one of the twobusiest jurisdictions in the state for class action filings.

Cook County, the other favored county for class actions, isscheduled as the site of a second hearing Sept. 19 in Chicago.

Earlier this year, the Senate Judiciary Committee sent to theJudiciary Subcommittee legislation that would impose more stringentrequirements for certifying class action lawsuits. The Subcommitteewas charged to hold further discussion on SB 1127.

According to a recent Manhattan Institute study, Illinois isseeing a sharp rise in class action lawsuits. The study ranked Cookand Madison as two of the three most active counties in the UnitedStates for class action suits.

"Illinois has become a state of choice for class actionlawsuits," declared Laura Kotelman, counsel for the NationalAssociation of Independent Insurers, Des Plaines, Ill.

"Our reputation for having an attractive environment for thecertification of national classes serves as a magnet forout-of-state trial lawyers who misuse the system for their personalgain," Ms. Kotelman continued.

She said that "it is time to stop the corruption of the Illinoiscourts and move forward in adopting a more rigorous approach toclass action certification."

According to Ms. Kotelman, by tightening certificationrequirements and adopting legislation similar to that alreadyenacted in 40 other states, "Illinois will go a long way to betterprotecting the interests of its citizens, the courts, as well asbusinesses and consumers across the country."

The NAII said that current law allows attorneys to have nationalclass action cases heard in "obscure county courts, resulting inthese smaller courts dictating public policy positions andinsurance regulation for all 50 states."