News

Holtz Quoted in Hotel & Motel Management Magazine on Class Actions

May 20, 2005

Corporate litigation head Jim Holtz was quoted in the May 16, 2005 Hotel Motel Management Magazine on new class action law as follows:

"Class-action Law Offers Safeguards to Hotel Industry by Elaine Yetzer Simon"

"NATIONAL REPORT --The Class Action Fairness Act of 2005, which was signed by President Bush earlier this year, is expected to have a positive effect on the hotel industry.

The legislation's purpose is to reduce the number of class-action lawsuits and to ensure that both sides have a level playing field by moving more class-action lawsuits to federal courts. Class-action suits seeking $5 million or more would be heard in state court only if the primary defendant and more than one-third of the plaintiffs are from the same state. If fewer than one-third of the plaintiffs are from the same state as the primary defendant and the suit involves more than $5 million, the case would go to federal court."

James Holtz, partner and head of corporate and commercial litigation for Stutz Artiano Shinoff & Holtz in San Diego, agreed that the federal involvement will be a benefit for the hotel industry.

"Because federal judges have lifetime appointments, and do not stand for election, there is less concern about local bias," Holtz said. "The federal courts apply more stringently the requirements for class-action certification, thereby stopping many class actions before they begin. This reform should be good for the hotel industry in general, as it should reduce the number of class actions filed and the great cost of defending such class actions."

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