The AP
reports, "The Obama White House on Wednesday 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." This is the latest move by the Obama administration to undo
pre-emption policy. Kenneth Baer, communications director at the White
House Office of Management and Budget, said, "When it comes to
pre-emption, we're saying no more of their approach." Now, "the Obama
administration will ask agencies to go back and find Bush-era
regulations that contain pre-emption language in the preambles or in
the body of the regulations and that are not justified by law." Les
Weisbrod, president of the American Association for Justice, said "the
Obama administration has 'overturned actions taken by Bush
administration bureaucrats who were influenced by powerful,
well-connected corporations.'"
The Wall Street Journal
reports, "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.'"
BusinessWeek
reports, "Lauded by the plaintiffs' bar and downplayed by some business
groups, Obama's decision reverses a highly charged Bush Administration
practice and could help rewrite the legal landscape for everything from
pharmaceuticals and beauty products to car safety equipment, mattress
flammability, and food sweeteners." Les Weisbord, president of AAJ
said, "On behalf of the thousands of people whose cases have been
affected by complete immunity preemption, we are heartened by the
Presidential memo released today." He added, "The Obama memo on
regulatory preemption makes clear that the rule of law will once again
prevail over the rule of politics."
From the American Association for Justice news release.
Recent Comments