FOR IMMEDIATE RELEASE
CONTACT: Amy Auth
202-225-2071

WASHINGTON – This afternoon, United States Rep. Virginia Foxx (N.C.-5) voted to limit the ability of trial lawyers to file baseless lawsuits that hurt American families and force small businesses to close their doors.  H.R. 420, the Lawsuit Abuse Reduction Act of 2005, passed the House in a 228 to 184 vote.

“It is a sad fact that lawsuit abuse is costing Americans well over $200 billion per year.  While some claims are legitimate, a great number contain no merit at all,” said Rep. Foxx.  “I am pleased that this bill will provide a number of sanctions against those who file frivolous lawsuits.  Anyone who files a baseless claim to prey upon innocent Americans and small businesses must face the consequences.”

The Lawsuit Abuse Reduction Act will restore mandatory (rather than discretionary) sanctions on attorneys and parties who file reckless lawsuits.  It will permit requiring the reimbursement of attorney’s fees and litigation costs in connection with frivolous lawsuits.  In addition, it will limit forum shopping, which gives attorneys the ability to hand pick a court and bring lawsuits to jurisdictions that have a history of providing plaintiffs with huge awards.

The bill will also abolish the “free pass” provision which permits parties to avoid sanctions by withdrawing a lawsuit within 21 days after a motion for sanctions has been filed.

“Without strong consequences for filing baseless lawsuits, innocent Americans will continue to suffer.  This bill is a positive step in stopping out-of-control trial lawyers from threatening the vitality of our small businesses,” said Rep. Foxx.

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