Do Federal Courts Need to be More Active Against Frivolous Lawsuits? (H.R. 720)
Do you support or oppose this bill?
What is H.R. 720?
(Updated March 22, 2018)
This bill would reinstate punishments for attorneys, law firms, and parties involved in frivolous lawsuits filed in federal court. In general, a "frivolous" lawsuit is considered to have no basis in fact or existing law and has been filed simply to harass a defendant.
Specifically, it would restore sanctions covered by Rule 11 of the Federal Rules of Civil Procedure. Under current law, courts can, but are not required to, impose such sanctions intended to deter frivolous lawsuits.
If passed, this bill Judges to put monetary sanctions on lawyers who file frivolous lawsuits. These sanctions could include attorney’s fees and the costs incurred by the victim of the frivolous lawsuit. The court could also deal with the problem by dismissing the case or striking the pleadings.
This bill would also remove an amendment to Rule 11 that currently allows parties and their attorneys to avoid sanctions if they withdraw or correct their frivolous lawsuit within 21 days of filing.
Argument in favor
Frivolous lawsuits cost the U.S. billions of dollars and diminish the public’s faith in the legal system. This bill deters meritless lawsuits from being filed in the first place.
Argument opposed
The deterrents against frivolous lawsuits in this bill could lead to people not filing legitimate lawsuits for fear that they will face punishment if something goes wrong.
Impact
Cost of H.R. 720
Additional Info
In-Depth: Rep. Lamar Smith (R-TX) — the sponsor of this legislation — described the legal situation that his bill attempts to remedy like this:
“Every day, innocent Americans face the scourge of frivolous lawsuits. Their reputations and livelihoods are jeopardized by attorneys who have everything to gain and nothing to lose by filing baseless lawsuits. LARA fights this legalized extortion. I look forward to working with Chairman Goodlatte and Senator Grassley to get this commonsense bill to President Trump’s desk.”
This bill was passed by the House Judiciary Committee on a vote of 17 to 6. A similar version passed in the House in September 2015 by a margin of 241 to 185, but didn’t see a vote in the Senate.
The previous version of this legislation was opposed by Democrats — only three of whom voted for the bill — including Rep. John Conyers (D-MI), who said it would:
“Turn back the clock to a time when federal rules of civil procedure discouraged civil rights cases, limited judicial discretion, and permitted satellite litigation to run wild.”
Of Note: According to the U.S. Chamber of Commerce’s Institute for Legal Reform, lawsuits cost the U.S. economy about $264 billion each year. That comes to about $850 per person. As a percentage of a country’s economy, the annual legal liability in the U.S. is twice the rate of the UK, three times higher than France’s rate, and five times higher than Japan’s.
Media:
- Sponsoring Rep. Lamar Smith (R-TX) Press Release
- CBO Cost Estimate (Previous Version)
- House Judiciary Committee Press Release (Previous Version)
- The Hill (Previous Version)
- Houston Chronicle (Previous Version)
- Texans for Lawsuit Reform (In Favor)
- Mother Jones (Previous Version - Opposed)
- U.S. Chamber of Commerce (Context)
- LegalZoom (Context)
Summary by Eric Revell
(Photo Credit: Flickr user Beinecke Library)
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