Bush Nears First Win of Term With Class-Action Bill (Update1)

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Feb. 11 (Bloomberg) -- U.S. President George W. Bush is poised to claim the first legislative victory of his second term following Senate approval of a bill to move most class-action lawsuits from state to federal courts.

The Senate passed the measure by a 72-26 vote in Washington yesterday. Republican leaders said the House of Representatives will pass the bill next week. Echoing a theme in his re-election bid, Bush said at an economic summit in December that class-action reform would help ensure that ``frivolous lawsuits don't drive up the cost of doing business.''

The victory gives Bush a needed political lift as he heads toward more contentious battles, such as his effort to allow workers to divert some of their Social Security taxes into private accounts. A new Associated Press poll found his job approval declining, particularly among older Americans.

Republicans argue the class-action legislation will prevent trial lawyers from winning lucrative settlements by filing suits in local courts where judges and juries favor plaintiffs over corporations. A coalition of companies including Allstate Corp., Pfizer Inc., Ford Motor Co. and Hartford Financial Services Group Inc. lobbied for the measure.

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