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Congress Passes Lawsuit Abuse Reduction Act of 2004
On Sept. 14, the Republican-led House passed a bill dubbed the Lawsuit Abuse Reduction Act of 2004 that aims to do just that: deter attorneys and their clients from bringing unfounded suits. The vote was 229-174 for the bill that would impose sanctions on lawyers who bring suits that are deemed unfounded.
The bill's sponsor, Rep. Lamar Smith (R-TX), has complained that, at present, “almost any party can bring any suit in almost any jurisdiction. That's because plaintiffs and their attorneys have nothing to lose. All they want is for the defendant to settle. This is legalized extortion.” Smith asserts that frivolous lawsuits wreak havoc on the reputations of individuals and organizations, drive up insurance costs, and cost those who are sued so much in legal fees and court costs that bankruptcy can result.
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