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Posted by DB_Story on 10/11/68 11:30
http://www.cbsnews.com/stories/2005/10/27/politics/main986537.shtml
'Frivolous' Suits Could Be Costly
WASHINGTON, Oct. 28, 2005
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(CBS/AP) The House has approved a bill that would take away lawyers'
licenses if they repeatedly file lawsuits deemed to be frivolous.
Supporters of the bill, which passed Thursday in a 228-184 vote, say
lawsuits deemed baseless by a judge for flimsy facts or faulty
interpretations of the law are a waste of court time and often a bonanza for
lawyers - rather than a chance to recoup legitimate damages for clients.
Opponents say the legislation would deter more than rogue lawyers. People
with legitimate complaints against big companies could be scared off by a
provision that would require judges to order the plaintiffs in lawsuits
found to be frivolous to pay "reasonable" attorney fees of the defendants.
Rep. Jerrold Nadler, D-N.Y., said that if a single plaintiff loses to a big
corporation that employs multiple attorneys charging high fees, "'reasonable
attorney fees' is going to add up to a lot of money."
The White House calls the measure - which still needs Senate approval - "a
step in the right direction" toward eradicating bogus lawsuits.
No Senate vote is expected this year.
Insurance premiums and health care costs have risen as a result of frivolous
lawsuits, argued Rep. Lamar Smith, R-Texas, the bill's sponsor.
"All they want is for the defendant to settle," Smith said of the lawyers
for such plaintiffs. "This is legalized extortion."
The House bill would reinstate a pre-1993 rule setting mandatory penalties
against lawyers who file frivolous lawsuits. It would suspend for a year
lawyers who are deemed to have filed three baseless claims in any judicial
circuit during their careers.
Opponents of the proposed law say frivolous lawsuits have no tangible effect
on insurance premiums. Some, like Rep. John Conyers, D-Mich., argue the bill
could deter legitimate labor, environmental or discrimination lawsuits.
"The Republican leadership doesn't care much about these issues," Rep. James
McGovern, D-Mass., said as the House debate opened.
The American Bar Association says the measure would infringe on states'
rights by setting policy in state as well as federal courts.
The bill was approved by the House last year, 229-174, but did not come up
for a vote in the Senate. An end-of-year crush of spending bills and other
matters also make a Senate vote unlikely this year.
The House by voice vote added an amendment sponsored by Judiciary Committee
Chairman James Sensenbrenner, R-Wis., that allows sanctions to be imposed
for the destruction of certain documents in federal court cases. The
amendment also clarifies the anti-forum-shopping provision by saying that if
there is no state court in the county in which the injury occurred, the case
can be brought in the nearest county where a general court is located.
The Judicial Conference of the United States, which sets policy for the
federal judiciary, opposes the bill. In a letter sent to the House Judiciary
Committee, the judicial group said the Smith bill would "not help deter
litigation abuses" but would increase "litigation, costs and delays."
The conference also says the legislation would return the courts to a system
that required penalties for every violation of the rule and "spawned
thousands of court decisions and generated widespread criticism."
The American Trial Lawyers Association, in outlining its opposition to the
bill, points out that judges already have the power to impose a variety of
sanctions on lawyers and law firms involved in frivolous cases. On its web
site, the ATLA says the House bill would " force litigants to operate under
terms that were used to punish and deter valid claims of discrimination."
The bill approved Thursday by the House is the third piece of legislation in
a larger campaign by Republicans to limit lawsuits.
Previous bills approved give lawsuit protections to gun manufacturers - a
measure signed into law this week - and prohibit the suing of food companies
for obesity blamed on their products. The food bill has yet to gain Senate
approval.
MMV, CBS Broadcasting Inc. All Rights Reserved. This material may not be
published, broadcast, rewritten, or redistributed. The Associated Press
contributed to this report.
ewsnead
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"I was much happier in previous existences when I wrote plays, composed
music, conquered nations, discovered continents, and developed cures
for diseases." - Tom Cruise.
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