Securities Law Updates | New Proposed Legislation
July 15, 2011
House Judiciary Committee Approves Bill to Thwart Frivolous Lawsuits
The Lawsuit Abuse Reduction Act of 2011
H.R. 966, 7/7/2011
The House Judiciary Committee has approved legislation to reduce frivolous lawsuits by restoring sanctions against attorneys who file meritless suits in federal court.
The Committee favorably reported H.R. 966, the Lawsuit Abuse Reduction Act (LARA), by a vote of 20-13.
Federal rules mandating sanctions for frivolous suits were watered down in 1993, resulting in the current crisis of widespread lawsuit abuse, according to Committee Chairman Lamar Smith.
“LARA restores accountability for attorneys by reinstating monetary sanctions against lawyers who file frivolous suits,” he added.
LARA provides the following steps to help thwart frivolous lawsuits:
· Reinstates the requirement that if there is a violation of Rule 11, there are sanctions (Rule 11 of the Federal Rules of Civil Procedure was originally intended to deter frivolous lawsuits by sanctioning the offending party).
· Requires that judges impose monetary sanctions against lawyers who file frivolous lawsuits. Those monetary sanctions will include the attorney’s fees and costs incurred by the victim of the frivolous lawsuit.
· Reverses 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.
Subscribe to Securities Law Updates
It's FREE and only takes seconds
Secure Organization LoopsRun your practice without it running you
Document Management RoomTruly, your global office
One-Click CommunicationYour one-stop solution for staying connected
Color-Coordinated Note TaggingEasy on your practice, easy on you
Barcoding SystemRaising the bar on document filing
Search and RedactRedact inefficiency from your practice
Welcome to the Future