September 21, 2015

U.S. House Passes Bill To Reduce The Number Of Frivolous Lawsuits

Last Thursday on a 241 to 185 vote, the U.S. House passed H.R. 758, the Lawsuit Abuse Reduction Act. According to the National Association of Manufacturers (NAM), H.R. 758 would restore disincentives to filing frivolous suits in federal court by reinstating mandatory sanctions when a judge finds that a claim is frivolous and a judge’s ability to use sanctions to compensate an injured party for the costs resulting from the frivolous claim. H.R. 758 would also eliminate 21-day “safe harbor,” which allows the filing party to withdraw a challenged claim free of the threat of rarely used sanctions. 

In a letter to members of the House of Representatives, NAM argued the bill would provide victims of frivolous lawsuits a reasonable opportunity to seek reimbursement for their legal expenses when challenging claims that are filed by unscrupulous actors seeking an easy payday. 

As a reminder, MSCI filed an amicus brief with the United States Supreme Court this summer aimed at curbing lawsuit abuse.