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March 17, 2017

“Congress Should Restore Meaningful Sanctions for Meritless Litigation”

Earlier this month, the U.S. House of Representatives passed the Lawsuit Abuse Reduction Act (LARA)  to restore the authority of Rule 11 sanctions in federal litigation.

The legislation will restore meaningful sanctions for meritless litigation, writes the Cato Institute. Although LARA has been proposed in one form or another for many Congresses, it has stalled in the Senate.

Additionally, the Cato Institute highlights the importance of implementing “further reforms for class actions that cross state lines,” as this type of suit often enables state courts to assert their power over transactions and parties in other states. Provisions in the Fairness in Class Action Litigation Act (FICALA), which passed the House on March 9, address this issue.

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