Legislation aimed at deterring the filing of frivolous lawsuits in federal courts has drawn support from the National Association of Mutual Insurance Companies (NAMIC). The group says that the proposed Lawsuit Abuse Reduction Act would help decrease costs for both consumers and businesses by holding attorneys accountable.
“Lawsuit abuse annually costs every American household thousands of dollars by raising costs of products and services,” said Jimi Grande, senior vice president of federal and political affairs for NAMIC. “Attorneys have a duty to ensure the claims they make are legitimate and in good faith, and when they choose instead to file baseless lawsuits in search of profit they should be held accountable.”
The bill, introduced by Representative Mike Collins, Republican of Georgia, calls for financial penalties against lawyers who pursue unfounded litigation. It would also allow non-monetary sanctions. Additionally, under the legislation, attorneys responsible for these lawsuits would be required to reimburse legal expenses incurred by their opponents. The proposal seeks to remove a current grace period that lets attorneys withdraw lawsuits without facing penalties.
“Reducing frivolous lawsuits benefits everyone but the bad actors abusing our system,” Grande said. “The Lawsuit Abuse Reduction Act will help ease the financial burdens out-of-control litigation puts on consumers and reduce the number of cases clogging our legal system. NAMIC appreciates Congressman Collins’ leadership on this issue and strongly urges the House to advance this important legislation as quickly as possible.”
