NAMIC supports new bill against frivolous civil lawsuits

Legislation aimed at reducing frivolous civil lawsuits in federal courts could lower costs for consumers and businesses, according to the National Association of Mutual Insurance Companies (NAMIC).

"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 Lawsuit Abuse Reduction Act, introduced by Rep. Mike Collins from Georgia, proposes financial penalties for lawyers filing frivolous litigation. It also allows non-monetary sanctions and mandates that attorneys reimburse legal costs if their lawsuits are deemed baseless. Additionally, the bill seeks to eliminate a grace period allowing attorneys to withdraw lawsuits without facing sanctions.

"Reducing frivolous lawsuits benefits everyone but the bad actors abusing our system," Grande stated. "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."