Thursday, May 21, 2009

Obama White House Reverses Preemption

The AP reports that the Obama Administration yesterday "undid a Bush administration policy that used federal regulations to undermine a wide range of state health, safety and environmental laws" many of which "limited the ability of injured consumers to sue companies in state courts." The Wall Street Journal notes, "The memo didn't name specific industries but it could affect a wide range of consumer products subject to both federal and state regulation." The Chamber of Commerce's Bryan Quigley said, "Allowing for more lawsuits will not create more jobs, except maybe for plaintiffs' lawyers." However, a statement by the American Association for Justice said, "The move will buttress 'laws designed to give Americans basic rights to hold wrongdoers accountable.'"

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