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Friday, November 15, 2013

Lawsuit abuse bill passes U.S. House

Today's post was shared by Legal Newsline and comes from legalnewsline.com

WASHINGTON (Legal Newsline) — The U.S. House of Representatives on Thursday approved a bill aimed at reducing the number of frivolous lawsuits plaguing the nation’s legal system.

The House voted 228-195 in favor of the Lawsuit Abuse Reduction Act.

Smith

Of those 228 votes for the legislation, 225 came from Republicans and three came from Democrats. Of the 195 against the bill, 193 came from Democrats and two came from GOP representatives.

LARA, or House Resolution 2655, would impose mandatory sanctions on lawyers who file meritless suits in federal court.

Specifically, the bill would:

- Reinstate sanctions for the violation of Rule 11. Rule 11 of the Federal Rules of Civil Procedure was originally intended to deter frivolous lawsuits by sanctioning the offending party;

- Ensure that judges impose monetary sanctions against lawyers who file frivolous lawsuits, including the attorney’s fees and costs incurred by the victim of the frivolous lawsuit; and

- Reverse the 1993 amendments to Rule 11 that allow parties and their attorneys to avoid sanctions for making frivolous claims by withdrawing them within 21 days after a motion for sanctions has been served.

The House Judiciary Committee passed the bill, sponsored by U.S. Rep. Lamar Smith, R-Texas, in September.

“LARA encourages attorneys to think twice before filing frivolous lawsuits,” Smith said at the time.

The National Association of Manufacturers, in a letter ahead of the House vote, urged lawmakers to...

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