[Congressional Record Volume 143, Number 58 (Wednesday, May 7, 1997)]
[Extensions of Remarks]
[Page E866]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        CONCERNING LEGAL REFORM

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                            HON. SONNY BONO

                             of california

                    in the house of representatives

                         Wednesday, May 7, 1997

  Mr. BONO. Mr. Speaker, I rise today to introduce the Trade and 
Professional Association Free Flow of Information Act, and ask my 
colleagues to join me by cosponsoring this important legislation.
  Unfortunately, our society has become increasingly litigious, 
especially within the area of product liability. Many product actions 
involve small business owners who find themselves involved in 
extensive, complex class-actions lawsuits involving numerous litigants. 
Most often, these small business owners do not possess the resources to 
research problems and collect the information they need to mount a 
credible, effective defense. In many cases, these business people turn 
to their professional association for help.
  Many associations have the staff and resources to provide research 
and information gathering services to their local members; indeed, this 
is but one of the many important roles played by associations at the 
local, State, and Federal level. However, as more and more association 
members request information--and the association attempts to fulfill 
the requests placed by its members--the association could find itself 
more deeply involved in litigation. And perhaps faced with liability, 
as a result.
  This threat may cause associations to hold back in providing 
assistance so desperately needed by small business owners. As a result, 
there is less information flowing between associations and association 
members--information that could help avoid litigation in the first 
place. This free flow of information from associations to their 
membership often works in the public interest to alert consumers to the 
characteristics of various products before a possibly defective product 
is placed into commerce on a widespread basis.
  My bill would primarily accomplish three goals. First, it would grant 
associations limited protection from liability when acting in good 
faith to provide information to their members. Only in cases of fraud 
or misrepresentation would an association be subject to a lawsuit for 
providing much-needed information and services to their members. This 
will set a national standard by which associations can provide 
information to their members without the threat of litigation.

  Second, it would protect associations from burdensome subpoenas 
unless a clear case can be made that the information possessed by the 
association is vital to a particular case or is unavailable from any 
other source. I must make an important distinction--this provision does 
not prevent associations from being served with subpoenas. It merely 
ensures that the information requested is vital to a particular action 
and unavailable from any other source. This further serves to encourage 
associations to develop and catalogue information beneficial to their 
members.
  Finally, the bill establishes a level of qualified privilege between 
association and member to ensure that confidential materials can be 
provided for the benefit of association members. This provision is 
based on joint defense privilege currently recognized by state and 
federal courts. This privilege is qualified in the sense that it can be 
overcome should a judge determine that the party seeking materials has 
a clear and compelling for the information
  It is my sincere hope that the provisions of my legislation will 
allow associations to continue to actively disseminate valuable 
information to their members while safeguarding current legal 
protections against fraud and abuse. The goal of the Trade and 
Professional Association Free Flow of Information Act is one I believe 
I share with a majority of my colleagues--a reduction in costly 
litigation through the free flow of information generated by 
associations for their members. I urge my colleagues to cosponsor this 
legislation.

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