House Moves on “Trial Lawyer Gravy Train Act”

Last week NFIB testified in judiciary committee against HB 4915, a bill that would open up a floodgate of frivolous class action suits at the state level against many small businesses and professions. Not surprisingly, the bill is strongly supported by the Michigan Trial Lawyers Association.

Under the current provisions of the Michigan Consumer Protection Act (MCPA) a business or profession that is licensed by the state is exempted from legal actions under the MCPA and is instead subject to the remedies provided to consumers under the rules or law by which they are licensed and by the agency or authority under which they are licensed. HB 4915 would allow a dual system of litigation where a consumer or plaintiff could bring a cause of action under both the licensing act for that profession and the MCPA. HB 4915 would explicitly subject any person whose profession, occupation, conduct, or transactions are regulated by a statute, rule, or regulation of this state or the United States to lawsuits, including class action lawsuits, under the Michigan Consumer Protection Act (MCPA).

NFIB will continue to fight this “Trial Lawyer Gravy Train Act”. The bill will be in Judiciary Committee again this week and a vote is expected.