House Judiciary Committee Passes Lawsuit Abuse Reduction Act to Curb Lawsuit Abuse
May 14, 2015
Washington, D.C.— The House Judiciary Committee today approved H.R. 758, the Lawsuit Abuse Reduction Act (LARA) by a vote of 19-13. Chairman Bob Goodlatte (R-Va.) and Congressman Lamar Smith (R-Texas), chief sponsor of LARA, praised the Committee’s approval of the legislation that will reduce frivolous lawsuits in the United States. The bill goes further to impose 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 with no guarantee of compensation. 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.”
It is my hope that LARA, one of the Speaker’s top legal reform priorities, is passed again by the full House of Representatives.”
Congressman Smith: “Lawsuit abuse is common in America because the lawyers who bring these frivolous cases have everything to gain and nothing to lose. Lawyers can file meritless lawsuits, and defendants are faced with the choice of years of litigation, high court costs and attorneys’ fees or a settlement out of court. This is legalized extortion. The Lawsuit Abuse Reduction Act restores accountability to our legal system by imposing mandatory sanctions on attorneys who file worthless lawsuits. LARA ensures that our justice system is not just another tool for those who line their pockets by filing frivolous suits. I look forward to working with Chairman Goodlatte and Senator Grassley to get this good bill passed in the House and Senate and sent to the president’s desk.”
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 parties and their attorneys 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.
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 with no guarantee of compensation. 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.”
It is my hope that LARA, one of the Speaker’s top legal reform priorities, is passed again by the full House of Representatives.”
Congressman Smith: “Lawsuit abuse is common in America because the lawyers who bring these frivolous cases have everything to gain and nothing to lose. Lawyers can file meritless lawsuits, and defendants are faced with the choice of years of litigation, high court costs and attorneys’ fees or a settlement out of court. This is legalized extortion. The Lawsuit Abuse Reduction Act restores accountability to our legal system by imposing mandatory sanctions on attorneys who file worthless lawsuits. LARA ensures that our justice system is not just another tool for those who line their pockets by filing frivolous suits. I look forward to working with Chairman Goodlatte and Senator Grassley to get this good bill passed in the House and Senate and sent to the president’s desk.”
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 parties and their attorneys 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.