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Member, Beacon International Group, Ltd.
WASHINGTONThe House of Representatives gave its approval Thursday to a bill designed to rein in frivolous lawsuits.
The Lawsuit Abuse Reduction ActH.R. 420would require federal judges to impose mandatory sanctions on attorneys who file lawsuits determined to be frivolous.
The Federal Rules of Civil Procedure required such mandatory sanctions until 1993, when Rule 11 was changed to give judges discretion in imposing penalties. The mandatory sanctions would also apply to state courts if an action substantially affects interstate commerce.
LARA is also designed to curb what tort-reform advocates consider to be abusive "forum-shopping." Under that practice, plaintiffs attorneys seek out the most plaintiff-friendly jurisdiction in which to file a personal injury lawsuit, even if the connection between the court and the parties involved is extremely tenuous.
Under LARA, personal-injury suits only could be filed in the jurisdiction where the plaintiff lives, where the alleged injury occurred or where the defendant has its principal place of business.
The bill passed on a largely party-line vote of 228 to 184.
The House approved similar legislation last year, but the Senate failed to follow suit. No companion legislation to LARA has been introduced in the Senate thus far this session.