October 27, 2015
This paper suggests procedural improvements to weed out dubious and fraudulent claims in the early stages of multidistrict litigation (MDL) proceedings to prevent them from becoming "lawsuit magnets." Read More
When multiple civil actions involving one or more common questions of fact are pending in several different federal district courts, those actions can sometimes be transferred to one district court for coordinated and consolidated management and pretrial proceedings under a single judge. Congress created the Multidistrict Litigation (MDL) Panel in 1968 to handle these types of cases. The purpose behind implementing MDLs was to streamline and manage large numbers of relatively complex, but factually similar, claims in a consistent manner. This would ideally reduce backlog in federal courts and reduce duplicative discovery, allowing the courts to administer mass claims in a more coherent fashion. Read More...
Unfortunately, the plaintiffs’ trial bar has found ways to game the mass tort litigation system and have devised ways to lump claims together so as to avoid federal jurisdiction. As a result, thousands of cases involving national controversies that should belong in federal court are being handled by a few “magnet” state courts—even though those courts have no relationship to the parties and have no business being involved. This often has the unfortunate effect of dragging innocent small businesses, unlucky enough to be located in a trial lawyer-friendly jurisdiction, into burdensome and expensive litigation.
Furthermore, even if a case is able to be heard in a federal mass tort MDL proceeding, some plaintiffs’ counsel file thousands of advertising-generated claims without properly investigating those claims’ legitimacy. This goes on unimpeded because MDL courts often limit the ability of defendants to scrutinize individual claims within an MDL. As a result, MDL proceedings are often clogged with bogus claims, prejudicing both plaintiffs with legitimate claims and defendants. Additionally, MDL courts sometimes force “bellwether” trials, despite their mandate to only conduct pre-trial proceedings, and use the results of those trials to pressure settlements.
Even though the cases in mass tort MDL proceedings account for roughly 35% of all civil lawsuits pending in the federal court system nationwide, appeals from key rulings in those proceedings are rarely allowed.
The Fairness in Class Action Litigation Act of 2017 (FICALA) will make a number of significant changes to the class action litigation system and also help address many of the significant abuses that turn MDLs into a mechanism of extracting strong-armed settlements from defendants, who are many times effectively deprived of their day in court.
The significant changes to the current state of the mass tort MDL system that FICALA makes include:
FICALA would put MDLs back on the right track towards being a means of making the management of federal civil cases more efficient, rather than a tool used by trial attorneys to extract massive, pressured settlements from defendants.
This special double-issue of the ILR Research Review features a wealth of insight and analysis on the world's rapidly changing litigation environment. The research contained in this issue targets exploitative litigation at home and abroad, examining numerous developments ranging from hyper-aggressive trial lawyer advertising in the U.S. to the imminent expansion of class actions in Europe. Read More
Self-Driving Cars, Thinking Machines Will Test Limits Of Tort Law; Texas Panel Told To Revive Asbestos Depo 'Coaching' Row... Read More
"Congress: Please protect us from frivolous lawsuits"; Justices approve individual appeals in combined cases... Read More
As plaintiffs' lawyers jockey for fees, class members have objected to requests from "ghost lawyers" in the $10 billion Volkswagen settlement, Law360 reports.... Read More
Debate Continues About WV Intermediate Appeals Court; Orange Juice Decision Shows the True Silliness of Many Food Lawsuits; False Claims Act Teleforum on February 1... Read More
AbbVie Drug Did Not Cause Man's Blood Clots, Jury Finds; How the Finance Industry Is Trying to Cash In on #MeToo... Read More
New Book Says Multidistrict Litigation Becoming 'More and More Deplorable'; Man Concludes Six-Figure Run By Settling 31st TCPA Lawsuit... Read More
Bayer, J&J win reversal of $28 million verdict in Xarelto lawsuit; Environmental Activists Press The `Necessity Defense'; Burford Says It Poured $1.3B Into Legal Market in 2017... Read More
A new study from the Institute for Legal Reform, West Virginia's Climb: Lawsuit Climate Progress in the Mountain State and the Path Ahead, highlights major improvements in the state's civil justice system over the last three years. ... Read More
Ahead of West Virginia Governor Jim Justice's "State of the State" address on Wednesday night, new research from the U.S. Chamber Institute for Legal Reform (ILR) provides a snapshot of the state's past accomplishments and future opportunities on legal reform.... Read More
West Virginia has begun shedding its reputation for having one of the worst civil justice systems in the nation. The state's lawsuit climate ranked dead last or second to last in surveys of business executives and attorneys conducted eleven times over the past fifteen years--until 2017. This report explores the beginning of the state's encouraging transformation and highlights areas where it may continue this progress.... Read More