As Obama-mania sweeps across the land and has Democrats everywhere buzzing, I find myself a bit wary of it all. Not that I'm a single-issue voter, but when it comes to civil justice issues, Illinois senator Barack Obama is a bust. His willingness to buy the corporate line about class action "reform" last year prevents me from joining the hallelujah chorus.
The 2005 Class Action Fairness Act (CAFA), a pet cause of George W. Bush, essentially forced most state consumer class actions into the backlogged and Republican dominated federal courts. Like the bankruptcy bill before it, class action reform was a special interest extravaganza, with the insurance, credit card, banking, pharmaceutical and auto industries hiring so many lobbyists that there was nearly one for every member of Congress. (You can read more about some of the chicanery involved in selling CAFA in my book.)
Obama's state was also the focus of intense media campaigns surrounding the bill sponsored by the U.S. Chamber of Commerce. But when the bill came up for a vote, Obama's fellow Illinois democrat, Sen. Dick Durbin, didn't cave. Potential presidential rival Hillary Clinton voted against the bill. Even John Kerry, who went on national television during the 2004 presidential debates and said, "John Edwards and I support tort reform," voted against this bill.
So what's up with Obama? No surprise here, but maybe it's the $2 million in campaign contributions he got from law and lobbying firms that represent many of the big business interests behind the bill. According to the Center for Responsive Politics, he got $60,000 from Mayer, Brown Rowe & Maw, the heavyweight lobbying firm whose partners reportedly helped write CAFA. Obama also got $70,000 from Sidley Austin, home of the notorious Dan Troy, the former FDA general counsel who used his government perch to help drug companies win lawsuits filed by injured consumers.
Obviously the class action vote was just one among many, but I do find it telling. Either Obama didn't fully understand the implications of the bill for consumers (who may be shut out of court when they're ripped off for relatively small amounts of money), or he was voting with an eye on the White House and courting future campaign contributors in the business world. Neither scenario gets me especially excited about the Democratic Party's new rock star.