Small Business Judicial Access Act of 1980

(Reported to House from the Committee on Small Business with amendment, H. Rept. 96-1008 (Part I))

Small Business Judicial Access Act of 1980 - =Title I: Revision of Class Damage Procedures= - Repeals Federal Rule of Civil Procedure 23(b)(3) (class actions where common questions of law or fact predominate) and creates two new types of civil actions against persons whose conduct gives rise to private actions for damages under statutes of the United States: (1) a public action vesting a single claim in the United States where (a) at least 200 persons have each sustained injury of less than $300, and (b) the combined damages exceed $60,000; and (2) a class compensatory action where at least 40 persons have each sustained injury greater than $300. Requires in both actions that the injuries or liability arise out of the same transaction or occurrence and that a substantial common question of law or fact exist.

Authorizes the court, in a public action against the United States, to make orders limiting the involvement of the Attorney General. Allows a public action to be brought by the United States or private person in the name of the United States. Authorizes the Attorney General, in actions by a private person, to: (1) assume control of the action; (2) permit prosecution by the private person; (3) refer the action to a State attorney general in specified circumstances; or (4) recommend to the court that the action be dismissed.

Authorizes the court in actions assumed by the Attorney General to permit the intervention of a relator or other person injured not in excess of $300. Permits the Attorney General to allow private counsel to participate in the conduct of the action by the United States.

Requires, in a public action brought by a private person where the United States prevails, the defendant to pay the relator taxable costs, reasonable expenses (including attorney fees where allowed by law), and an incentive fee. Specifies calculation of such fee, to a maximum of $10,000, and precludes payment to the relator's attorney.

Directs the Department of Justice, a State, or an agency which assumes control of a public action to pay the reasonable expenses, including attorney fees, to a relator whom the court finds measurably advanced the initiation of the action. Permits the Department, a State, or agency to retain a relator or other private counsel to litigate the action on behalf of the United States. Provides that all such payments shall be in effect for each fiscal year only as provided in advance in appropriations Acts.

Requires the judgment in a public action where liability is found to include a public recovery equal to the monetary gain realized by the defendant or the aggregate damage to persons injured, but in either case not in excess of $300 per person. Permits equitable or declaratory relief to be included. Sets forth the standards for electing the appropriate public recovery.

Requires the defendant to pay to the clerk of the court the amount of the judgment, to be used to establish the public recovery fund. Permits the court to make use of the Administrative Office of the U.S. Courts to allocate the fund to injured persons.

Provides that funds not used to pay claimants or for administrative expenses shall be transferred to the U.S. Treasury general fund unless a State prosecuted the action, in which case such funds shall be paid to the State as general revenues.

Authorizes appropriations as necessary to pay the expenses of a relator or private counsel but limits such appropriation to the amount of excess funds transferred to the U.S. Treasury.

Requires in a class compensatory action where the court has ordered separate trial of liability issues, and the defendant is found liable, that the defendant identify the persons likely to have been injured and the amount of individual injury. Authorizes the court to award equitable or declaratory relief in such actions.

Directs the court in a class compensatory action to give notice reasonably necessary to assure adequate representation of, and fairness to, all class members. (Current law requires the best notice practicable under the circumstances.)

Sets forth the following judicial management procedures applicable to both public and class compensatory actions.

Requires a preliminary hearing to be held within 120 days after an action is commenced to determine whether, and in what manner, the action shall proceed.

Limits discovery prior to such hearing to 30 interrogatories and ten days of depositions or the depositions of ten persons, and requests for production of documents. Prohibits discovery of injured parties prior to or after such hearing without a showing of substantial need of the materials and an inability without undue hardship of obtaining the substantial equivalence of the materials by other means.

Permits interlocutory appeals within 20 days of an order dismissing or allowing an action as a public or class compensatory action.

Requires the district court to try liability issues before damage issues, unless unconstitutional, or it is demonstrated to the court that such separation will not expedite final resolution of the action.

Permits the use of sampling to determine defendant's liability and the amount of damages.

Directs the judicial panel on multidistrict litigation to consolidate, to the extent feasible and consistent with the interests of justice, public, class compensatory, and other civil actions arising out of the same transaction or occurrence which present a substantial question of law or fact common to the injured persons.

Specifies the estoppel effects of public and class compensatory actions.

Requires that the court approve settlement of an action after a hearing and upon entry of a judgment stating the terms of the proposed settlement.

Requires a separate hearing to assure the reasonableness of an attorney's fee awarded in a public or class compensatory action. Permits the court to request the views of the United States in a public action or to designate a magistrate or special master for advice in either type of action.

=Title II: Appeal of Small Civil Penalties Against Small Business Concerns= - Permits any small business concern to appeal a civil penalty levied against it by a Federal agency directly to a United States district court provided such penalty does not exceed $2,500 and is not within the jurisdiction of the United States Tax Court, Customs Court, Court of Military Appeals, or Court of Claims. Directs the district court to refer such appeals to a United States magistrate who may dismiss an appeal for want of jurisdiction, or affirm, rescind, or modify the civil penalty involved. Declares that any determination on the merits of such an appeal by a magistrate shall be a final nonreviewable order.

=Title III: Office of Advocacy= - Directs the Office of Advocacy within the Small Business Administration to assist the Attorney General, a Federal agency, or a State in performing its duties in advancing public actions in order to facilitate collective relief to small business concerns for violations of Federal statutes.

Requires the Chief Counsel for Advocacy to submit specified reports to the President and the Congress on the procedures established by this Act.