Dreier Votes to Rein In Junk Lawsuits

September 14, 2004

WASHINGTON, DC - Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee, voted today to approve legislation that will significantly reduce the burden of junk lawsuits on our court system and small businesses. The Lawsuit Abuse Reduction Act, H.R. 4571, passed the House today, 229-174.

“The rising cost of insurance in this country is just one sign that frivolous lawsuits have gotten out of control,” Dreier said. “We have taken an important step today to bring reform to the judicial system that will ultimately protect the rights of our citizens and allow legitimate lawsuits to move through the system more quickly. Small businesses and consumers will see relief as a result of this important legislation.”

The Lawsuit Abuse Reduction Act will: restore mandatory sanctions for filing frivolous lawsuits, including attorneys’ fees and compensatory costs; abolish Rule 11's current “free pass” provision which allows lawyers to avoid sanctions for making frivolous claims; restore the opportunity for sanctions for abuses of the discovery process; allow Rule 11's provisions preventing frivolous lawsuits to apply to state cases in which a state judge finds the case affects interstate commerce by threatening jobs and economic losses to other states; and, prevent “forum shopping”- the notorious practice by which personal injury attorneys cherry-pick courts and bring lawsuits in jurisdictions that consistently hand down astronomical awards, even when the case has little or no connection to the state or locality.