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Tort Lobby Sharpens Its Aim on Hill
Legal Times
June 20, 2005
After back-to-back victories on long-stalled legal reform legislation, the business community might have paused for a congratulatory break.
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One bill that has a chance of passing -- it's backed by a coalition of some 160 groups and has a catchy acronym, LARA -- is the Lawsuit Abuse Reduction Act, a six-page bill that would purportedly reduce frivolous lawsuits, but which opponents say would merely increase litigation and has serious constitutional problems, as well.
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LARA is designed to put more teeth into Rule 11, the Federal Rule of Civil Procedure dealing with frivolous lawsuits. And it is bitterly opposed by the federal judiciary.
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The current legislation would eliminate the safe-harbor provision and for the first time make sanctions mandatory in the form of attorney fees -- if a Rule 11 violation was determined. That means deep-pocketed defendants could use the rule as a weapon to ward off suits, and plaintiffs and their lawyers could face judgments if their cases were thrown out.
The bill also forces state judges to determine whether a particular case has any interstate commerce connections. If it does, the state judge must apply the federal Rule 11 standard.
"There's no constitutional authority for Congress to order a state judge to hold that hearing to determine if there's a federal question in a state court case," notes Christopher Fairman, a professor at the Ohio State University Moritz College of Law.
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