U.S. Chamber Institute for Legal Reform backs LARA to curb abusive litigation

The U.S. Chamber Institute for Legal Reform (ILR) has expressed its support for the reintroduction of the Litigation Abuse Reduction Act (LARA). In a press release, the organization described LARA as a measure aimed at curbing abusive litigation tactics and enhancing efficiency within the federal civil justice system.

According to ILR's own statement, members of the House reintroduced LARA in September. The Institute characterizes this legislative measure as "a sensible, targeted fix" that seeks to establish accountability for abusive litigation practices. ILR further suggests that the bill would enable courts to focus on genuine claims rather than fabricated ones, aligning with its broader agenda for civil-justice reform. The reintroduction is seen as positive news by advocates of a fair and efficient legal system, positioning LARA as supportive of growth and accountability within its policy framework.

As per Congress.gov’s bill text for H.R. 5258, known as the Lawsuit Abuse Reduction Act of 2025, the proposal aims to amend Rule 11 by mandating sanctions when violations occur and eliminating the current 21-day "safe harbor" provision that allows offending documents to be withdrawn without penalty. The bill reinstates mandatory fee-shifting, enabling courts to order payment of reasonable attorneys’ fees and costs incurred due to violations. Section 2, titled "Attorney accountability," details these sanctions under Rule 11 and emphasizes predictable consequences for frivolous or harassing filings.

The Institute for Legal Reform, along with a study authored by Brattle, reports that U.S. commercial tort liability costs amounted to $347 billion in 2021. Small businesses bore $160 billion—48% of this total—despite contributing approximately 20% of commercial revenue. The study indicates that smaller firms face tort costs disproportionately higher relative to their revenue compared to larger firms, highlighting significant economic strain. ILR uses these findings to argue that reforms like LARA could alleviate unnecessary financial burdens while maintaining access to justice for legitimate claimants.

According to ILR’s official website, it is an affiliate of the U.S. Chamber of Commerce dedicated to promoting a fair, efficient, and balanced legal system through research, advocacy, and policy engagement at both federal and state levels. The organization positions itself as a leading advocate against lawsuit abuse, class actions, and third-party litigation funding. Its mission underscores improving competitiveness and economic growth by addressing litigation costs and fostering accountability within the civil justice system.