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Dear Editor,

Litigation, particularly improper litigation, imposes a tremendous burden on small businesses. The explosion of improperly filed class action lawsuits can often result in higher prices, higher insurance premiums and excessive litigation costs for small businesses trying to grow their business.

It could take only one lawsuit to drive a small business out of business. Often when a small business is faced with a lawsuit they are forced to settle out of court for fear of unlimited punitive damages.

There are currently two bills being discussed in the Senate (S. 1712, the Class Action Fairness Act and S. 865, Small Business Liability), that are aimed at protecting small business. S. 1712 would stop the ability of attorneys to zero in on the state they think would award them the largest fees. The bill in some cases would remove national, multi-million dollar class-action lawsuits from state courts and move them to federal courts.

Many small businesses are currently named as defendants in multi-state class-action suits not because they have committed any wrongdoing or are legally liable, but in order to keep interstate class action lawsuits out of federal court. S. 1712 would "free" these small businesses, as well as limit the liability (of noneconomic loss) to the proportion of the small business' responsibility. S. 865 would limit punitive damages against small business. The bill would cap punitive damages at the lesser of three times the amount awarded to the claimant for economic and noneconomic losses, or $250,000.

Think of how many small businesses would be protected by these bills. Think of how many owners and employees of small businesses could focus more fully on serving their customers if this bill were passed. Too many businesses are spending too much time on lawsuits that are abusive and frivolous. Just ask the owner/operators of fast food restaurants about the terrible effects of frivolous class action lawsuits. Your small business or industry could be next.

Small business is the backbone of our economy. Small business provides our country with the most jobs and the greatest amount of goods and services. Small business needs to be protected. In March, the U.S. House of Representatives passed H.R. 2341, the Class Action Fairness Act of 2002. Now it is up to the Senate to do the same. Please contact your U.S.

Senators and tell them you support S. 1712 and S. 865 for Legal Reform.

Mentor, OH