The U.S. House of Representatives Judiciary Committee voted18-10 to approve HR 4571, the Lawsuit Abuse Reduction Act, intendedto curb frivolous lawsuits. The legislation changes the way thatlawsuits deemed without merit would be treated under federal rulesgoverning civil trials. Sanctions for filing such lawsuits would bemandatory, rather than at the discretion of the judge. The billalso eliminates a provision allowing parties to avoid sanctions bywithdrawing claims and extending sanctions to state court casesthat affect interstate commerce.

The new legislation takes a first step toward reforming lawsuitabuse, said Carl Parks, senior vice president for governmentaffairs for the Property Casualty Insurers Association of America.“The property and casualty insurance industry spends millions ofdollars each year in legal fees,” Parks said. “Many of the casesfaced by the industry are legitimate, however, many of them arealso filed by lawyers simply trying to make a buck at the expenseof higher costs for consumers. This legislation will ensure greaterfairness in the system and an increased penalty for lawyers whoabuse the system for their own monetary gain.”