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September 15, 2004
Rep. Lamar Smith, R-San Antonio, today announced that
the Lawsuit Abuse Reduction Act, legislation he authored that will reduce
frivolous lawsuits, passed the House of Representatives. The bi-partisan
vote was 229-174.
“Frivolous lawsuits bankrupt individuals, ruin reputations, drive up
insurance premiums, increase health care costs, and put a drag on the
economy,” said Rep. Smith. “Frivolous suits are brought when there is no
evidence that shows negligence on the part of the defendant. These nuisance
lawsuits make a mockery of our legal system.”
“The gaming of the system by a few lawyers drives up the cost of doing
business and drives down the integrity of the judicial system. For
example, the Chief Executive Officer of San Antonio’s Methodist Children’s
Hospital was sued after he stepped into a patient’s hospital room and asked
how he was doing. Of course, a jury cleared him of any wrongdoing,” stated
Rep. Smith.
“Today almost any party can bring any suit in almost any jurisdiction.
That’s because plaintiffs and their attorneys have nothing to lose. All
they want is for the defendant to settle. This is legalized extortion. It
is lawsuit lottery,” asserted Rep. Smith.
The Lawsuit Abuse Reduction Act (H.R. 4571) does the following:
* Makes sanctions against attorneys or parties who file frivolous lawsuits
mandatory rather than discretionary;
* Removes a "safe harbor" provision that allows plaintiffs and their
attorneys to avoid sanctions for frivolous suits by withdrawing them within
21 days;
* Permits judges to order plaintiffs to reimburse reasonable litigation
costs, including attorney’s fees;
* 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.
* Mandates a 1-year suspension of a law license after a lawyer has filed 3
or more frivolous lawsuits in the same federal court.
Rep. Smith is co-Chairman of the House Working Group on Judicial
Accountability, which seeks to educate Members of Congress and the public
about judicial abuse issues.
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