Representing North Carolina’s Ninth District                                                                        

REP. MYRICK VOTES TO REDUCE BURDEN ON BUSINESSES

(Washington, D.C.) – Rep. Sue Myrick (NC-9) voted today for, and the House passed, H.R. 420, The Lawsuit Abuse Reduction Act of 2005.  This legislation will provide appropriate sanctions against frivolous lawsuits that harm innocent businesses.

“I was a small business owner once, and I know how tough it is to make a living.  Frivolous lawsuits are a hindrance to small businesses and economic growth.  Right now, businesses are having to pay high insurance fees to protect themselves against these lawsuits, and some have even closed their doors because they cannot afford the insurance,” said Rep. Myrick.  I voted for this bill because it will protect businesses from personal injury lawyers who bring false lawsuits against them.  I voted for it because it will lower small business costs, and will help create more jobs.”

The number of civil lawsuits has tripled since the 1960s.  Individuals and personal injury lawyers who file baseless claims and victimize innocent people should be held accountable for their actions, and this bill does just that.

Specifically, the bill:
- Restores mandatory sanctions on attorneys, law firms, or parties who file frivolous lawsuits. 
- If a judge deems a lawsuit to be frivolous the party who brought the lawsuit would be required to issue monetary compensation to the defendant for lawyer fees and litigation costs.
- Prevents personal injury attorneys from cherry-picking courts that may hand down astronomical rewards even when the case has little or no connection to the place where the incident happened.  It does this by stipulating that personal injury cases only be brought where the plaintiff resides, where the plaintiff was allegedly injured, or where the defendant’s principal place of business is located.

This legislation has the support of the National Federation of Independent Business, the National Restaurant Association, the National Association of Manufacturers, and the U.S. Chamber of Commerce. 

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