Realtors(r) Endorse Bill to Curb Abusive Class Action Lawsuits

The National Association of Realtors(r) (NAR) applauds legislation passed by the U.S. House of Representatives today and the Senate last week that will curb abusive class action lawsuits that can drive up real estate costs. The Class Action Fairness Act, S. 5, now heads to President Bush, who is expected to sign the measure shortly.

The bipartisan bill creates uniform rules regarding where class action lawsuits can be filed and moves many class action lawsuits, especially interstate lawsuits and those with national implications, from state courts to federal courts. The legislation eliminates legal venue shopping that can result in defendants settling class action lawsuits, even those without merit, rather than risking trial in plaintiff-friendly jurisdictions that have become litigation magnets.

Real estate firms can be targets for class action litigation in areas such as property management, environmental compliance and mortgage brokerage. In addition, record class action damage awards and case settlement costs have contributed to the rapid escalation of insurance premiums for homeowners, commercial property and liability insurance as many property and casualty insurers choose to leave the market. The current system has forced homeowners to pay record property insurance premiums and real estate firms to absorb skyrocketing business insurance costs, costs that often end up being passed on to clients and consumers.

"Realtors(r) support establishing uniform standards for where class action lawsuits can be filed," said NAR President Al Mansell, CEO of Coldwell Banker Residential Brokerage in Salt Lake City. "We believe the interests of both our businesses and our clients will be well served by the reforms proposed by the class action bill. The Class Action Fairness Act will help curb skyrocketing insurance premiums that get passed onto consumers and real estate firms alike."

The National Association of Realtors(r), "The Voice for Real Estate," is America's largest trade association, representing one million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at http://www.realtor.org. This and other news releases are posted in the Web site's "News Media" section in the NAR Media Center.

REALTOR(r) is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS(r) and subscribe to its strict Code of Ethics.

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