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Washington,
D.C., October 28, 2005—The
U.S. House of Representatives today passed the Lawsuit Abuse
Reduction Act of 2005 (LARA), H.R. 420, by a vote of
228-184. LARA will help businesses that have been or are
potential victims of some of the worst abuses of our civil
justice system—frivolous lawsuits and forum shopping, according
to the Lawsuit Abuse Reform Coalition (LARC).
“We commend members
of the House for their strong support toward putting an end to
lawsuit abuse and plaintiffs’ lawyers gaming the civil justice
system,” said LARC Chair and President of the
American
Tort Reform Association Tiger Joyce. “LARA
will require sanctions for lawyers filing frivolous claims which
will discourage the bottom-feeder lawyers who engage in legal
extortion to force unjustified settlements. These lawyers smear
the entire legal profession by this unscrupulous behavior.”
LARA would deter the
filing of frivolous lawsuits by placing the cost of defending
frivolous claims on the lawyers who bring them. LARA also would
put an end to forum shopping by properly limiting the filing of
personal injury claims to places where plaintiffs live or were
hurt, or in the jurisdiction of the defendant’s principal place
of business.
“NFIB strongly
endorsed this bill because it will significantly reduce the
culture of predatory lawsuits harming our small businesses,
communities and economy,” said NFIB Executive Vice President Dan
Danner. “Small businesses welcome LARA’s passage in the House,
and we urge the Senate to take up this common-sense
legislation.”
“Since LARC was
formed this spring, we have grown to include more than 320
member organizations that represent millions of businesses
throughout the United States,” said Jim Anderson, Vice
President-Government Relations of the National Association
of Wholesaler-Distributors. “Lawsuit abuse affects everyone, but
it can severely affect a small business' bottom line. We urge
the Senate to act expeditiously on this bill that is of
particular importance to the small business community.”
“The House is pushing
back on plaintiffs’ lawyers’ reckless and costly misuse of our
courts by reining in lawsuit abuse. We applaud their efforts
and call on the Senate to do their part to limit the burden of
junk lawsuits on American employers and consumers,” remarked
Lisa Rickard, President of the U.S. Chamber Institute for Legal
Reform.
“Both our society and
our economy need a legal system that is respected for its
integrity and reliability,” said National Association of
Manufacturers President John Engler. “To maintain such integrity
and reliability, the system must demand – with threat of serious
sanction – professional discipline from the trial attorneys who
practice within it.”
LARA was favorably
reported by the House Committee on the Judiciary May 25 by a
vote of 19-11. LARA was reintroduced January 26 in the U.S.
House of Representatives by Representative Lamar Smith (TX).
Last year, the House passed the Lawsuit Abuse Reduction Act of
2004 (H.R. 4571) on September 14, 2004, by a bipartisan vote of
229-174.
For more information
on LARA and why it is needed, plus a list of LARC members,
please visit
www.LawsuitAbuseReform.org.
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