In September, Reps. Mike Collins (GA-10), Brandon Gill (TX-26), Tom Tiffany (WI-07), and Harriet Hageman (WY-At Large) reintroduced the Litigation Abuse Reduction Act (LARA). This is welcome news for anyone who wants a civil justice system that is fair, efficient, and focused on real claims and not manufactured ones. LARA is a sensible, targeted fix that creates accountability for abusive litigation tactics and helps keep America’s courts open to those who truly need them. This is smart, pro-growth legislation that is needed to remove unnecessary cost burdens for businesses and consumers while preserving justice for injured claimants, and is especially important in an environment of rising tort costs and consumer economic concern.
What LARA Does
At its core, LARA updates the rules of the road so that those who file frivolous lawsuits or abusive motions in federal court face real, predictable consequences. Specifically, it would:
- Restore mandatory sanctions when a party violates Rule 11 of the Federal Rules of Civil Procedure by filing frivolous claims or papers, using litigation to harass, or otherwise needlessly driving up costs.
- End the “free shot” 21-day safe harbor that lets abusive filings be withdrawn without consequence after the damage is done.
- Ensure sanctions can include paying the other side’s reasonable attorneys’ fees and costs caused by the violation.
These reforms realign incentives. Today, the asymmetry of litigation costs allows meritless suits to be used as leverage for “pay-to-go-away” settlements which distort fairness and justice in the system. LARA helps rebalance the system by deterring bad-faith filings at the outset, allowing courts to focus on merit-based claims and better serve everyone.
Why It Matters
- It protects small businesses and job creators. For many small and mid-sized employers, even defeating a baseless suit can be ruinously expensive. LARA discourages meritless or otherwise dubious litigation aimed simply to pressure small businesses to settle.
- It frees up judicial resources. Every hour courts spend sorting through meritless claims is an hour not spent resolving legitimate disputes quickly and fairly.
- It promotes confidence in the civil justice system. When the rules are clear and consequences are real, parties are more careful, and the process is more trusted.
Targeted Reform—Not a “Chilling Effect”
Critics claim that a stronger Rule 11 could chill valid claims. That’s not how LARA works. It only targets frivolous filings and improper litigation tactics, not good-faith legal arguments or close calls on evolving questions of law. While mandating certain monetary sanctions, the bill also makes sure that courts retain the ability to tailor other sanctions to fit the bad conduct, including non-monetary remedies where appropriate. The goal is deterrence and accountability, not punishment for zealous advocacy. Remember, efficiency for both parties will be better for the pursuit of justice, especially justice that favors facts and merit.
The Bottom Line
Reintroducing LARA is a meaningful step toward a more balanced civil justice system. It discourages gamesmanship, reduces waste, and keeps the courthouse doors open for legitimate claims. It is pro-fairness, pro-accountability, and pro-growth.
Lawmakers should move swiftly to pass LARA. Businesses, consumers, and the courts themselves stand to benefit from a legal system where frivolous litigation is firmly disfavored.