109th CONGRESS
1st Session
H. R. 420
IN THE SENATE OF THE UNITED STATES
October 31, 2005
Received; read twice and referred to the Committee on the Judiciary
AN ACT
To amend Rule 11 of the Federal Rules of Civil Procedure to improve
attorney accountability, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Lawsuit Abuse Reduction Act of 2005'.
SEC. 2. ATTORNEY ACCOUNTABILITY.
Rule 11(c) of the Federal Rules of Civil Procedure is amended--
(1) by amending the first sentence to read as follows: `If a pleading,
motion, or other paper is signed in violation of this rule, the court,
upon motion or upon its own initiative, shall impose upon the attorney,
law firm, or parties that have violated this subdivision or are responsible
for the violation, an appropriate sanction, which may include an order
to pay the other party or parties for the reasonable expenses incurred
as a direct result of the filing of the pleading, motion, or other paper,
that is the subject of the violation, including a reasonable attorney's
fee.';
(2) in paragraph (1)(A)--
(A) by striking `Rule 5' and all that follows through `corrected.' and
inserting `Rule 5.'; and
(B) by striking `the court may award' and inserting `the court shall
award'; and
(3) in paragraph (2), by striking `shall be limited to what is sufficient'
and all that follows through the end of the paragraph (including subparagraphs
(A) and (B)) and inserting `shall be sufficient to deter repetition of
such conduct or comparable conduct by others similarly situated, and to
compensate the parties that were injured by such conduct. The sanction
may consist of an order to pay to the party or parties the amount of the
reasonable expenses incurred as a direct result of the filing of the pleading,
motion, or other paper that is the subject of the violation, including
a reasonable attorney's fee.'.
SEC. 3. APPLICABILITY OF RULE 11 TO STATE CASES AFFECTING INTERSTATE COMMERCE.
In any civil action in State court, the court, upon motion, shall determine
within 30 days after the filing of such motion whether the action substantially
affects interstate commerce. Such court shall make such determination based
on an assessment of the costs to the interstate economy, including the loss
of jobs, were the relief requested granted. If the court determines such
action substantially affects interstate commerce, the provisions of Rule
11 of the Federal Rules of Civil Procedure shall apply to such action.
SEC. 4. PREVENTION OF FORUM-SHOPPING.
(a) In General- Subject to subsection (b), a personal injury claim filed
in State or Federal court may be filed only in the State and, within that
State, in the county (or if there is no State court in the county, the nearest
county where a court of general jurisdiction is located) or Federal district
in which--
(1) the person bringing the claim, including an estate in the case of
a decedent and a parent or guardian in the case of a minor or incompetent--
(A) resides at the time of filing; or
(B) resided at the time of the alleged injury;
(2) the alleged injury or circumstances giving rise to the personal injury
claim allegedly occurred;
(3) the defendant's principal place of business is located, if the defendant
is a corporation; or
(4) the defendant resides, if the defendant is an individual.
(b) Determination of Most Appropriate Forum- If a person alleges that the
injury or circumstances giving rise to the personal injury claim occurred
in more than one county (or Federal district), the trial court shall determine
which State and county (or Federal district) is the most appropriate forum
for the claim. If the court determines that another forum would be the most
appropriate forum for a claim, the court shall dismiss the claim. Any otherwise
applicable statute of limitations shall be tolled beginning on the date
the claim was filed and ending on the date the claim is dismissed under
this subsection.
(c) Definitions- In this section:
(1) The term `personal injury claim'--
(A) means a civil action brought under State law by any person to recover
for a person's personal injury, illness, disease, death, mental or emotional
injury, risk of disease, or other injury, or the costs of medical monitoring
or surveillance (to the extent such claims are recognized under State
law), including any derivative action brought on behalf of any person
on whose injury or risk of injury the action is based by any representative
party, including a spouse, parent, child, or other relative of such
person, a guardian, or an estate;
(B) does not include a claim brought as a class action; and
(C) does not include a claim against a debtor in a case pending under
title 11 of the United States Code that is a personal injury tort or
wrongful death claim within the meaning of section 157(b)(5) of title
28, United States Code.
(2) The term `person' means any individual, corporation, company, association,
firm, partnership, society, joint stock company, or any other entity,
but not any governmental entity.
(3) The term `State' includes the District of Columbia, the Commonwealth
of Puerto Rico, the United States Virgin Islands, Guam, and any other
territory or possession of the United States.
(d) Applicability- This section applies to any personal injury claim filed
in Federal or State court on or after the date of the enactment of this
Act.
SEC. 5. RULE OF CONSTRUCTION.
Nothing in section 3 or in the amendments made by section 2 shall be construed
to bar or impede the assertion or development of new claims or remedies
under Federal, State, or local civil rights law.
SEC. 6. THREE-STRIKES RULE FOR SUSPENDING ATTORNEYS WHO COMMIT MULTIPLE
RULE 11 VIOLATIONS.
(a) Mandatory Suspension- Whenever a Federal district court determines that
an attorney has violated Rule 11 of the Federal Rules of Civil Procedure,
the court shall determine the number of times that the attorney has violated
that rule in that Federal district court during that attorney's career.
If the court determines that the number is 3 or more, the Federal district
court--
(1) shall suspend that attorney from the practice of law in that Federal
district court for 1 year; and
(2) may suspend that attorney from the practice of law in that Federal
district court for any additional period that the court considers appropriate.
(b) Appeal; Stay- An attorney has the right to appeal a suspension under
subsection (a). While such an appeal is pending, the suspension shall be
stayed.
(c) Reinstatement- To be reinstated to the practice of law in a Federal
district court after completion of a suspension under subsection (a), the
attorney must first petition the court for reinstatement under such procedures
and conditions as the court may prescribe.
SEC. 7. PRESUMPTION OF RULE 11 VIOLATION FOR REPEATEDLY RELITIGATING SAME
ISSUE.
Whenever a party presents to a Federal court a pleading, written motion,
or other paper, that includes a claim or defense that the party has already
litigated and lost on the merits in any forum in final decisions not subject
to appeal on 3 consecutive occasions, and the claim or defense involves
the same plaintiff and the same defendant, there shall be a rebuttable presumption
that the presentation of such paper is in violation of Rule 11 of the Federal
Rules of Civil Procedure.
SEC. 8. ENHANCED SANCTIONS FOR DOCUMENT DESTRUCTION IN PENDING FEDERAL
COURT PROCEEDINGS.
Whoever willfully and intentionally influences, obstructs, or impedes, or
attempts to influence, or obstruct, or impede, a pending Federal court proceeding
through the willful and intentional destruction of documents sought pursuant
to the rules of such Federal court proceeding and highly relevant to that
proceeding--
(1) shall be punished with mandatory civil sanctions of a degree commensurate
with the civil sanctions available under Rule 11 of the Federal Rules
of Civil Procedure, in addition to any other civil sanctions that otherwise
apply; and
(2) shall be held in contempt of court and, if an attorney, referred to
one or more appropriate State bar associations for disciplinary proceedings.
SEC. 9. BAN ON CONCEALMENT OF UNLAWFUL CONDUCT.
(a) In General- In any Rule 11 of the Federal Rules of Civil Procedure proceeding,
a court may not order that a court record not be disclosed unless the court
makes a finding of fact that identifies the interest that justifies the
order and determines that that interest outweighs any interest in the public
health and safety that the court determines would be served by disclosing
the court record.
(b) Applicability- This section applies to any record formally filed with
the court, but shall not include any records subject to--
(1) the attorney-client privilege or any other privilege recognized under
Federal or State law that grants the right to prevent disclosure of certain
information unless the privilege has been waived; or
(2) applicable State or Federal laws that protect the confidentiality
of crime victims, including victims of sexual abuse.
Passed the House of Representatives October 27, 2005.
Attest:
JEFF TRANDAHL,
Clerk.
END
