Small Business Judicial Access Act of 1981

Summary

Small Business Judicial Access Act of 1981 - Title I: Revision of Class Damage Procedures - Replaces Federal Rules of Civil Procedure 23(b)(3) (class actions where common questions of law or fact predominate) with the following new types of civil actions: (1) a public action, vesting a single claim in the United States with respect to persons whose conduct in the manufacture, rental, distribution, sale, or purchase of realty, goods, or services gives rise to a civil right of action under a U.S. statute; and (2) a class compensatory action with respect to persons whose conduct gives rise to a civil right of action under a U.S. statute. Requires for a public action that at least 200 persons each sustain injury less than $300 and that the combined injury exceed $60,000. Conditions a class compensatory action on at least 40 persons having each sustained injury greater than $300. Requires in both actions that the injuries or liability arise out of the same transaction or occurrence and that a substantial common question of law or fact exist. Allows a public action to be brought by the Attorney General, a Federal agency with exclusive enforcement authority, or a private individual. Authorizes the Attorney General, in actions brought by a private individual, to: (1) assume control of the action; (2) permit prosecution by such party; (3) refer the action to a State attorney general in certain circumstances; or (4) recommend to the court that the action be dismissed. Permits the court to disallow assumption or referral and issue an appropriate order assuring that counsel defending the action against the United States will be independent of the prosecution. Requires, in a public action brought by a private person where the United States prevails, that the defendant pay to the relator taxable costs, reasonable expenses (including attorney fees where allowed by law), and an incentive fee. Specifies calculation of such incentive fee, to a maximum of $10,000, and precludes payment to the relator's attorney. Requires the judgment in a public action where the defendant is found liable to include a public recovery measured as either the aggregate damage or benefit or profit realized by the defendant (not to exceed $300 per person). Permits the court to include injunctive or declaratory relief. Directs the court to determine if the court or the Director of the Administrative Office of the U.S. shall administer the payment of claims from the public recovery fund. Specifies procedures for the administration of the fund and for allocation of payments to injured persons making claims. Grants to the district courts exclusive jurisdiction of class compensatory actions. Requires a defendant, in any such action where the court has ordered separate trial of liability issues, to identify and serve notice upon persons likely to have been injured. Prescribes procedures to expedite the management of both actions. Specifies discovery limits prior to the preliminary hearing, except for good cause shown. Repeals the current requirement that the best notice practicable under the circumstances be given to all members of the class who can be identified. Requires instead that the court give notice reasonably necessary to assure adequacy of representation of and fairness to all class members. Permits the court to dismiss either type of action upon a determination that full utilization of this Act and the Federal Rules will not enable the court to adequately manage the proceeding. Grants to the courts of appeal jurisdiction to review at their discretion orders dismissing or allowing public or class compensatory actions. Title II: Appeal of Small Civil Penalties Against Small Business Concerns - Authorizes a small business against which a Federal agency has imposed a civil penalty of $2,500 or less to appeal such penalty to the agency or an appropriate district court. Title III: Office of Advocacy - Adds as a primary function of the Office of Advocacy of the SBA facilitating collective relief to small business for violations of antitrust and other Federal statutes by advising and consulting with the Attorney General, Federal agencies, and States.

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1 official file

• Introduced in House

  summary · EN · 5 January 1981

  Open at official source

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