Senate hearing on litigation reform

Arbitration was on several senators’ minds, although it isn’t among the topics of the four bills considered. [John O’Brien, Legal NewsLine] This from Sen. Al Franken (D-Minn.) was passing strange, though:

“Now I know that there are bad actors out there – those who file frivolous lawsuits against hard-working and honest businesspeople – but these bills aren’t the solution,” Franken said.

“They don’t help weed out frivolous claims early on. They seek to deter meritorious claims by making class action suits so expensive, lengthy and onerous that people won’t bother to bring them in the first place.

Among the four bills before the committee was the Lawsuit Abuse Reduction Act, intended to reinvigorate federal Rule 11 sanctions, and described as follows:

It would make sanctions mandatory against attorneys who file frivolous lawsuits. Currently, judges have discretion on whether to impose sanctions.

Plaintiffs also have a 21-day safe harbor in which they can withdraw their claims after a motion for sanctions has been filed.

It is hard to know how to describe LARA’s intent as anything other than to deter the filing and pursuit of meritless claims, thus “weed[ing them] out… early on.”

One Comment

  • “It would make sanctions mandatory against attorneys who file frivolous lawsuits. Currently, judges have discretion on whether to impose sanctions.” Doesn’t that just shift the “judge’s discretion” point from whether to impose sanctions, to whether to determine that a suit is frivolous? Or is there an objective, applicable standard that a judge won’t be able to escape?