Washington, D.C. - A bill aimed at keeping frivolous lawsuits out of America’s courtrooms passed the House of Representatives today by a vote of 229-174.  U.S. Congressman Kevin Brady (R-The Woodlands) co-sponsored the Lawsuit Abuse Reduction Act of 2004, H.R. 4571.

 

The Lawsuit Abuse Reduction Act of 2004 sanctions attorneys who file frivolous lawsuits with a “three-strikes and you’re out” provision, prohibits forum shopping, and allows judges to order plaintiffs to reimburse attorney fees and court costs to the defendant they filed the claim against.

 

“Those who have been wrongly injured deserve their day in court. But because America is the lawsuit capitol of the world, good doctors are forced out of practice, health insurance is skyrocketing out of reach, and American jobs are being shipped overseas,” said Brady.  “Frivolous lawsuits outsource American jobs.”

 

A recent U.S. Chamber of Commerce study estimates that litigation, frivolous lawsuits included, cost the U.S. economy $233 billion annually, well more than the entire cost of the War in Iraq. 

 

The Lawsuit Abuse Reduction Act makes sanctions against attorneys or parties who file frivolous lawsuits mandatory rather than discretionary and removes a "safe harbor" provision that allows plaintiffs and their attorneys to avoid sanctions for frivolous suits by withdrawing them within 21 days.

Additionally, H.R. 4571 permits judges to order plaintiffs to reimburse reasonable litigation costs, including attorney’s fees and reduces “court-friendly shopping” by requiring that plaintiffs in civil actions sue only where they live or were injured, or where the defendant's principal place of business is located.

After an attorney has filed three or more frivolous lawsuits in the same federal court, this bill mandates a 1-year suspension of the attorney’s law license.

The Lawsuit Abuse Reduction Act is sensible reform that will help restore confidence to America’s justice system.