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F I S C A L I M P A C T R E P O R T

SPONSOR Ezzell

DATE TYPED 02/21/05 HB HM 7

SHORT TITLE Support President’s Legal Reform

SB

ANALYST Ford

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Response Received From

Attorney General (AGO)

SUMMARY

Synopsis of Bill

House Memorial 7 makes findings related to the impact of class action litigation and medical

malpractice litigation and calls upon the New Mexico congressional delegation to “support the

President’s call for meaningful class action reform and medical malpractice liability reform.”

Significant Issues

On February 18, 2005, the President signed S. 5, known as the “Class-Action Fairness Act of

2005.” The new law changes where class-action cases are heard, diverting more cases to federal

courts. The law also limits attorney fees in settlements where plaintiffs get discounts on products

instead of financial settlements. The fees will be linked to the coupon’s redemption rate or the

actual hours spent working on the case.

The memorial also calls upon the New Mexico congressional delegation to support the Presi-

dent’s medical malpractice liability reform proposals. Currently, Congress is considering H.R.

534, which would limit non-economic damages in medical malpractice cases to $250 thousand.

EF/lg