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.

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.

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.

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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