Goodlatte Praises House Passage of Lawsuit Abuse Reduction Act to Curb Lawsuit Abuse

Washington, D.C.— The House of Representatives today passed H.R. 758, the Lawsuit Abuse Reduction Act (LARA) by a vote of 241-185. Chairman Bob Goodlatte (R-Va.) and Congressman Lamar Smith (R-Texas), chief sponsor of LARA, praised the House’s approval of the legislation that will reduce frivolous lawsuits in the United States. The bill imposes mandatory sanctions on attorneys who file baseless lawsuits in federal courts. Chairman Goodlatte: “Frivolous lawsuits have no place in the American courtroom, and current loopholes allow too many lawyers to take advantage of innocent victims. Current laws allow lawyers to file baseless claims, and pass legal costs on to the victims who have no guarantee of compensation for the injury they suffered. That’s why the passage of LARA is essential to end lawsuit abuse. LARA guarantees that victims are fully compensated for harm done by filers of frivolous lawsuits in federal courts. “Today Congress took a stand against attorneys who prey on weak victims just for the satisfaction of making a quick dollar in our judicial system. It is my hope that LARA, one of the Speaker’s top legal reform priorities, is taken up in the Senate as soon a possible.” Congressman Smith: “Frivolous lawsuits have become too common. Lawyers who bring these cases have everything to gain and nothing to lose under current rules, which permit plaintiffs’ lawyers to file frivolous suits, no matter how absurd the claims, without any penalty.  Meanwhile defendants are often faced with years of litigation and substantial attorneys’ fees. LARA restores accountability to our legal system by reinstating mandatory sanctions for attorneys who file frivolous lawsuits.” Background:LARA restores accountability to our legal system by penalizing lawyers for filing baseless lawsuits. The bill specifically ensures 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 reverses the 1993 amendments to Rule 11 that allow attorneys to make frivolous claims without penalty by withdrawing them within 21 days. LARA supports innocent Americans who are victims of frivolous lawsuits: LARA makes mandatory that victims of frivolous lawsuits be compensated for harm done to them by filers of frivolous lawsuits. LARA is even-handed: LARA applies to cases brought by individuals as well as businesses both large and small. The bill also applies to both plaintiffs and defendants. LARA ends the “free pass” for lawyers: The bill eliminates the 21-day “free pass” for lawyers to file frivolous pleadings. Current federal rules allow lawyers to file frivolous pleadings without any sanctions as long as they withdraw those pleadings within 21 days, even if the victims of the frivolous lawsuit had to spend time and money responding to the frivolous pleadings. LARA protects states’ rights: LARA only applies to federal court and does not change state court rules.