Class Action Fairness Act of 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.
| 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. |
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| 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 | |
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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. 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.