[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4571 Referred in Senate (RFS)]
2d Session
H. R. 4571
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 15, 2004
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
2004''.
SEC. 2. ATTORNEY ACCOUNTABILITY.
Rule 11 of the Federal Rules of Civil Procedure is amended--
(1) in subdivision (c)--
(A) 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
the other party or parties to pay 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.'';
(B) in paragraph (1)(A)--
(i) by striking ``Rule 5'' and all that
follows through ``corrected.'' and inserting
``Rule 5.''; and
(ii) by striking ``the court may award''
and inserting ``the court shall award''; and
(C) 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.''; and
(2) by striking subdivision (d).
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 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 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 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; or
(2) the alleged injury or circumstances giving rise to the
personal injury claim allegedly occurred; or
(3) the defendant's principal place of business is located.
(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; and
(B) does not include a claim brought as a class
action.
(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. ENHANCED SANCTIONS FOR DOCUMENT DESTRUCTION.
(a) In General.--Whoever willfully and intentionally influences,
obstructs, or impedes, or attempts to influence, obstruct, or impede, a
pending court proceeding through the willful and intentional
destruction of documents sought in, and highly relevant to, that
proceeding shall be punished with mandatory civil sanctions of a degree
commensurate with the civil sanctions available under Rule 37 of the
Federal Rules of Civil Procedure, in addition to any other civil
sanctions that otherwise apply.
(b) Applicability.--This section applies to any court proceeding in
any Federal or State court.
Passed the House of Representatives September 14, 2004.
Attest:
JEFF TRANDAHL,
Clerk.