NAMIC: Lawsuit Abuse Reduction Act Will Help Lower Costs for Consumers, Businesses

Legislation to hold attorneys accountable for filing frivolous civil lawsuits in federal courts would reduce costs and lower the “tort tax” Americans pay every year, the National Association of Mutual Insurance Companies said today.

“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.”

Introduced by Rep. Mike Collins, R-Ga., the Lawsuit Abuse Reduction Act would require financial penalties for lawyers who file frivolous litigation and would allow non-monetary sanctions. The bill would also require attorneys who file these lawsuits to reimburse legal costs for the other side and reduce their ability to threaten litigation by eliminating a grace period in which attorneys can withdraw the lawsuits without sanction.

“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.”