Lawsuit Abuse Reduction Act of 2004

LAWSUIT ABUSE REDUCTION ACT OF 2004 -- (House of Representatives - September 14, 2004)

Mr. SENSENBRENNER. Mr. Speaker, pursuant to House Resolution 766, I call up the bill (H.R. 4571) to amend Rule 11 of the Federal Rules of Civil Procedure to improve attorney accountability, and for other purposes, and ask for its immediate consideration.

BREAK IN TRANSCRIPT

Mr. BISHOP of Georgia. Mr. Speaker, I rise today in opposition to H.R. 4571, the misnamed "Frivolous Lawsuit Reduction Act," and in support of the Turner substitute.

Mr. Speaker, the 11,000 frivolous lawsuits filed yearly are a burden on our court system, which interfere with the administration of justice, and cost U.S. taxpayers millions of dollars each year. I fully support commonsense reform.

H.R. 4571 was drafted by and for large corporations and special interests with unlimited legal resources. It denies justice to injured Americans by limiting them from getting their day in court. That's wrong, Mr. Speaker. It does nothing to help consumers, Mr. Speaker, and targets innocent victims instead of holding responsible those who recklessly or negligently harm others.

The bill also unfairly benefits foreign corporations because it only permits a lawsuit to be filed where the corporation's principal place of business is located, making it more difficult to pursue a personal injury or product liability action against a foreign corporation in the United States. That's also wrong, Mr. Speaker, and it's not the kind of reform that America needs.

The Turner substitute is measured and tough on abuse of the system, while also protecting the rights of injured victims to receive the compensation they deserve. In fact, the substitute's "three-strikes-and-you're-out" provisions forbid frivolous filing attorneys from bringing another suit for 10 years. For a first violation the substitute would hold the attorney in contempt. For the second violation the substitute imposes a mandatory fine. And for a third and final violation, a "third strike," you're out. That's tough, Mr. Speaker, and a commonsense approach to frivolous litigation that everyone should support.

The substitute also contains a civil rights carve-out, so that citizens who want to bring new civil rights cases can do so. It contains expedited disposition provisions to weed out junk lawsuits, enhances sanctions for document destruction, and protects injured parties and consumers. Finally, it eliminates the provision in the underlying bill that provides a windfall to foreign or "Benedict Arnold" corporations to the disadvantage of their U.S. competitors.

The Turner substitute is tough, Mr. Speaker, it's fair, and it provides real reform while preserving access to the courts for millions of Americans. I urge my colleagues to support it.

BREAK IN TRANSCRIPT