ATA Applauds Introduction of Bill to Fight Frivolous Lawsuits

Washington - Today, the American Trucking Associations commended Representatives Mike Collins (R-Georgia), Tom Tiffany (R-Wisconsin), Brandon Gill (R-Texas) and Harriet Hageman (R-Wyoming) for introducing the Lawsuit Abuse Reduction Act, legislation designed to reduce frivolous lawsuits and protect employers from having to waste money defending against bogus claims. Members of ATA's Moving & Storage Conference, who were on Capitol Hill for their annual Call on Washington, stood behind Representatives Collins and Tiffany at a press conference they hosted to announce their bill.

Federal rules requiring sanctions for frivolous lawsuits were weakened in 1993, which resulted in increased lawsuit abuse. The legislation would reinstate mandatory sanctions for lawyers who use this tactic in federal court.

"When frivolous lawsuits are filed to shake down honest trucking companies, hardworking truckers and consumers pay the price," said American Trucking Associations SVP of Legislative Affairs Henry Hanscom. "The Lawsuit Abuse Reduction Act would turn the tables on those who pervert our justice system for profit by ensuring that unscrupulous lawyers-not their victims-bear the consequences of frivolous claims. The trucking industry strongly supports this commonsense reform championed by Congressman Collins to restore fairness in the courtroom and protect job creators."

The Lawsuit Abuse Reduction Act would restore accountability to the U.S. legal system by providing penalties against filing frivolous lawsuits. Specifically, the bill:

• Reinstates sanctions for the violation of Rule 11 of the Federal Rules of Civil Procedure, which was originally intended to deter frivolous lawsuits by sanctioning the offending party.

• Ensures that judges impose monetary sanctions against lawyers who file frivolous lawsuits, including the attorney's fees and costs incurred by the victim of the frivolous lawsuit.

• Reverses the 1993 amendments to Rule 11 that allow parties and their attorneys to avoid sanctions for making frivolous claims by withdrawing them within 21 days after a motion for sanctions has been served.