House bill sanctions lawyers for filing frivolous lawsuits

The legislation also targets "venue shopping." Interest groups disagree about whether the measure would improve the legal system.

By Tanya Albert, AMNews staff. Oct. 4, 2004.

A bill aimed at capping noneconomic damages in medical malpractice lawsuits is still stalled in the Senate, but the House has passed another measure that some believe will help reform the legal system another way: Reducing frivolous lawsuits.

Lawmakers on Sept. 15 approved the Lawsuit Abuse Reduction Act in a 229-174 bipartisan vote. The bill would apply to all lawsuits and was not passed specifically to address medical liability insurance problems.

The measure's proponents say it would prevent "venue shopping" by requiring that lawsuits be filed where plaintiffs live or where they were injured, or where the defendant's principal place of business is located.

They also believe it would deter lawyers from filing meritless charges by suspending their licenses if they bring three or more frivolous lawsuits in the same federal court. Doctors consider both to be problems that factor into rising liability insurance rates.

"Frivolous lawsuits bankrupt individuals, ruin reputations, drive up insurance premiums, increase health care costs and put a drag on the economy," the bill's author, Rep. Lamar Smith (R, Texas), said in a statement. "The gaming of the system by a few lawyers drives up the cost of doing business and drives down the integrity of the judicial system."

The American Medical Association had not taken a position on the bill at press time. The Association is continuing to look at it.

The House legislation also calls for:

• Imposing mandatory monetary sanctions against attorneys or parties who file frivolous lawsuits.