Cloture on the motion to proceed to the measure not invoked in Senate by Yea-Nay Vote. 59 - 39. Record Vote Number: 403.
Congressional Research Service
Official summary
Version 00 · Introduced in Senate · Oct 17, 2003
Class Action Fairness Act of 2003 - Amends the Federal judicial code to prohibit a Federal district court from approving a proposed class action settlement under which: (1) members would receive non-cash benefits or would be required to expend funds in order to obtain proposed benefits, unless the court finds, after a hearing, that the settlement is fair, reasonable, and adequate; (2) any member is obligated to pay sums to class counsel that would result in a net loss to the member, unless the court finds that non-monetary benefits to the member outweigh the monetary loss; (3) greater sums would be paid to some class members than to others solely on the basis of their closer geographic proximity to the court; or (4) a greater share would be paid to a class representative than to other class members. Sets forth requirements for: (1) notices of class actions to class members, including a requirement that such notice include a summary written in plain, easily understood language of class member legal consequences, rights, and benefits, obligations of defendants, and attorney fees; and (2) notices of proposed settlements to be served upon appropriate State and Federal regulatory officials.
Grants Federal district courts original jurisdiction of any civil action in which the matter in controversy exceeds $5 million, exclusive of interest and costs, and in which any member of a class of plaintiffs is: (1) a citizen of a State different from any defendant; (2) a foreign state or a citizen or subject of a foreign state and any defendant is a citizen of a State; or (3) a citizen of a State and any defendant is a foreign state or a citizen or subject of a foreign state.
Sets forth considerations based upon which a district court may decline to exercise jurisdiction over a class action in which greater than one-third but less than two-thirds of the members of all proposed plaintiff classes in the aggregate and the primary defendants are citizens of the State in which the action was originally filed, including consideration of whether: (1) the claims asserted involve matters of national or interstate interest; and (2) the class action has been pleaded in a manner that seeks to avoid Federal jurisdiction.
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Provides that district courts shall not be granted jurisdiction over any class action: (1) in which two-thirds or more of the members of all proposed plaintiff classes and the primary defendants are citizens of the State in which the action was originally filed; (2) in which the primary defendants are States; (3) in which the number of members of all proposed plaintiff classes is less than 100; or (4) involving certain securities claims or claims involving the internal governance of a corporation that arise under the laws of the State of incorporation.
Sets forth provisions governing: (1) the removal of interstate class actions to U.S. district court; and (2) review by appeal of orders remanding class actions to State courts.
Directs the Judicial Conference of the United States to report on class action settlements, including recommendations for best court practices to ensure that settlements are fair to class members.
Source last updated: Aug 18, 2025. Consult Congress.gov for the current record.
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