IB 
Union Calendar No. 73
108TH CONGRESS 
1ST SESSION H. R. 1115
[Report No. 108–144] 
To amend the procedures that apply to consideration of interstate class 
actions to assure fairer outcomes for class members and defendants, 
to outlaw certain practices that provide inadequate settlements for class 
members, to assure that attorneys do not receive a disproportionate 
amount of settlements at the expense of class members, to provide 
for clearer and simpler information in class action settlement notices, 
to assure prompt consideration of interstate class actions, to amend 
title 28, United States Code, to allow the application of the principles 
of Federal diversity jurisdiction to interstate class actions, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 6, 2003
Mr. GOODLATTE (for himself, Mr. BOUCHER, Mr. SENSENBRENNER, Mr. 
MORAN of Virginia, Mr. SMITH of Texas, Mr. STENHOLM, Mr. DELAY, 
Mr. DOOLEY of California, Mr. HYDE, Mr. HOLDEN, Mr. COX, and Mr. 
CRAMER) introduced the following bill; which was referred to the Com-
mittee on the Judiciary 
JUNE 9, 2003
Additional sponsors: Mr. ROGERS of Michigan, Mr. FLAKE, Mr. EMANUEL, 
Mr. SHAYS, Mr. HOSTETTLER, Mr. SCOTT of Georgia, Mr. CHOCOLA, Mr. 
CHABOT, Mr. MCHUGH, Mrs. NORTHUP, Mr. COBLE, Mr. CUNNINGHAM, 
Mr. CANNON, Ms. HART, Mr. BARRETT of South Carolina, Mr. BAKER, 
Mr. FEENEY, Mr. KELLER, Mr. PENCE, Mr. GALLEGLY, Mr. FORBES, 
Mr. MILLER of Florida, Mr. BURGESS, Mr. BRADLEY of New Hampshire, 
Mr. WICKER, Mr. GOODE, Mrs. BIGGERT, Mr. FRANKS of Arizona, Mr. 
KENNEDY of Minnesota, Mr. SESSIONS, Mr. OSBORNE, Mr. DEMINT, Mr. 
SOUDER, Mr. SCHROCK, Mr. HENSARLING, Mr. PUTNAM, Mr. SULLIVAN, 
Mr. MICA, and Mr. CALVERT
JUNE 9, 2003 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on March 6, 2003] 
A BILL 
To amend the procedures that apply to consideration of 
interstate class actions to assure fairer outcomes for 
class members and defendants, to outlaw certain prac-
tices that provide inadequate settlements for class mem-
bers, to assure that attorneys do not receive a dispropor-
tionate amount of settlements at the expense of class 
members, to provide for clearer and simpler information 
in class action settlement notices, to assure prompt con-
sideration of interstate class actions, to amend title 28, 
United States Code, to allow the application of the prin-
ciples of Federal diversity jurisdiction to interstate class 
actions, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CON-
TENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Class Action Fairness Act of 2003’’. 
(b) REFERENCE.—Whenever in this Act reference is 
made to an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to 
a section or other provision of title 28, United States Code.
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; reference; table of contents. 
Sec. 2. Findings and purposes. 
Sec. 3. Consumer class action bill of rights and improved procedures for interstate 
class actions. 
Sec. 4. Federal district court jurisdiction of interstate class actions. 
Sec. 5. Removal of interstate class actions to Federal district court. 
Sec. 6. Appeals of class action certification orders. 
Sec. 7. Enactment of Judicial Conference recommendations. 
Sec. 8. Effective date.
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds as follows: 
(1) Class action lawsuits are an important and 
valuable part of our legal system when they permit 
the fair and efficient resolution of legitimate claims 
of numerous parties by allowing the claims to be ag-
gregated into a single action against a defendant that 
has allegedly caused harm. 
(2) Over the past decade, there have been abuses 
of the class action device that have—
(A) harmed class members with legitimate 
claims and defendants that have acted respon-
sibly; 
(B) adversely affected interstate commerce; 
and 
(C) undermined public respect for the judi-
cial system in the United States. 
(3) Class members have been harmed by a num-
ber of actions taken by plaintiffs’ lawyers, which pro-
vide little or no benefit to class members as a whole, 
including—
(A) plaintiffs’ lawyers receiving large fees, 
while class members are left with coupons or 
other awards of little or no value; 
(B) unjustified rewards being made to cer-
tain plaintiffs at the expense of other class mem-
bers; and 
(C) the publication of confusing notices that 
prevent class members from being able to fully 
understand and effectively exercise their rights. 
(4) 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—
(A) the lawyers, rather than the claimants, 
are likely to receive the maximum benefit; 
(B) less scrutiny may be given to the merits 
of the case; and 
(C) defendants are effectively forced into set-
tlements, in order to avoid the possibility of huge 
judgments that could destabilize their companies. 
(5) These abuses undermine the Federal judicial 
system, the free flow of interstate commerce, and the