Terry Everett, October 31, 2005

One of the continual goals of the conservatives in Congress is to reduce the cost of doing business in America, which in turn, makes it possible for competitive prices for goods and services in this country and the promotion of job growth. In general, lower business costs are healthy for the economy and all Americans. The latest Congressional effort to curb the high cost of business is legislation passed last week in the U.S. House to stem the rising tide of frivolous lawsuits.

Let me begin by pointing out that our legal system is the best in the world, and the right to file lawsuits in legitimate cases must and will be protected. However, it is clear that these legal avenues have been widely abused in recent times to the point that it is costing our country $200 billion a year.

Every segment of our society and economy is affected by frivolous lawsuits through higher liability insurance costs. This has most dramatically shown itself in our healthcare industry where skyrocketing liability premiums for doctors have translated into big increases in medical costs for patients. America's small business owners employ over 90 percent of this nation's workers and they are unfortunately the least equipped to deal with the growing costs of lawsuit abuse. As a result, jobs are lost as employers cannot afford liability insurance premiums. This cannot continue.

Last Thursday, the U.S. House voted 228 to 184 to pass the Lawsuit Abuse Reduction Act (HR 420). This badly-needed legislation targets the worst offenders in lawsuit abuse by imposing mandatory sanctions against attorneys or parties who file frivolous lawsuits. It would remove the "safe harbor" loophole that currently allows parties and attorneys to avoid sanctions by withdrawing lawsuits 21 days after a motion for sanctions has been filed.

One of the most significant provisions of the new legislation is its limitation on "forum shopping" where profit-seeking plaintiffs seek lawsuit-friendly courts. HR 420 would require a plaintiff to file a personal injury case where he/she lives at the time of filing or at the time of injury. It would prevent plaintiff's lawyers from filing cases in locations which have no connection to the case.

The passage of the Lawsuit Abuse Reduction Act is the latest in a series of necessary bills passed by the House this year to rein in out-of-control legal action. Two weeks ago, the U.S. House passed the Personal Responsibility in Food Consumption Act of 2005 (HR 554) to prohibit obesity or weight gain-related claims against the food industry. These claims are abused by those seeking to make a quick profit for their own poor judgment while threatening small business jobs. The same week the House also passed the Protection of Lawful Commerce in Arms Act (S. 397) which stems lawsuits against firearms manufacturers for the criminal, or unlawful use of their products (something over which the manufacturers have no control). In July, the House passed the HEALTH Act (HR 5) to curb rising healthcare costs due to litigation. And in April, the Class Action Fairness Act (S. 5) cleared the House and was passed into law. It limits class action lawsuit abuse.

While every American who is injured or victimized by another must have his/her right to seek justice, the culture of our current society has created an environment where legal action is misused to realize quick profits for attorneys and plaintiffs at the expense of everyone else. Congress seeks to return fairness and balance so that the interests of real victims and the public at large are finally served.

Congressman Terry Everett, a Republican, represents Alabama's Second Congressional District, which includes the state capitol, Montgomery.