49–008 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 109–253 

PROVIDING FOR CONSIDERATION OF H.R. 420, LAWSUIT 

ABUSE REDUCTION ACT OF 2005 

OCTOBER 25, 2005.—Referred to the House Calendar and ordered to be printed 

Mr. GINGREY, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 508] 

The Committee on Rules, having had under consideration House 

Resolution 508, by a non-record vote, reports the same to the 

House with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 420, the Lawsuit Abuse Reduction Act of 2005, under a structured rule. The rule 

provides one hour of general debate equally divided and controlled 

by the chairman and ranking minority member of the Committee 

on the Judiciary. 

The rule waives all points of order against consideration of the 

bill. The rule provides that the amendment in the nature of a substitute recommended by the Committee on the Judiciary now printed in the bill shall be considered as an original bill for the purpose 

of amendment and shall be considered as read. 

The rule makes in order only those amendments printed in this 

report. The rule provides that the amendments printed in this report may be offered only in the order printed in this report, may 

be offered only by a Member designated in this report, shall be considered as read, shall be debatable for the time specified in this report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment, and shall not be subject 

to a demand for division of the question in the House or in the 

Committee of the Whole. The rule waives all points of order against 

the amendments printed in this report. 

Finally, the rule provides one motion to recommit with or without instructions. 

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EXPLANATION OF WAIVERS

The Committee is not aware of any points of order against consideration of the bill. The waiver of all points of against consideration of the bill is prophylactic in nature. 

SUMMARY OF AMENDMENTS MADE IN ORDER

(Summaries derived from information provided by the amendment sponsor.) 

1. Sensenbrenner: Manager’s Amendment. Includes provisions 

imposing sanctions for the destruction of relevant documents in a 

pending Federal court proceeding; provisions for setting standards 

for a court’s determination that certain court records should be 

sealed; and provisions providing for a presumption of a Rule 11 violation when the same issue is repeatedly relitigated. It also includes a clarification that makes clear that, in the antiforum shopping provisions, if there is no State court in the county in which 

the injury occurred, the case can be brought in the nearest county 

where a court of general jurisdiction is located. The manager’s 

amendment also makes clear that it does not affect personal injury 

claims that Federal bankruptcy law requires be heard in a Federal 

bankruptcy court. (10 minutes). 

2. Schiff/Kind: Amendment in the nature of a substitute. Provides strong ‘‘three strikes and you’re out’’ mandatory sanctions for 

attorneys who file frivolous lawsuits or engage in frivolous conduct 

during discovery. Enhances sanctions for document destruction, ensures that corporations can be sued in the U.S., cracks down on 

parties attempting to relitigate the same issue on consecutive occasions, bans the concealment of unlawful conduct, and protects civil 

rights claims. (40 minutes). 

TEXT OF AMENDMENTS MADE IN ORDER

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE SENSENBRENNER OF WISCONSIN, OR HIS DESIGNEE, DEBATABLE FOR 10 

MINUTES

Page 4, strike lines 8 through 11 and insert the following: 

(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—

Page 5, line 23, strike ‘‘and’’. 

Page 5, line 25, strike the period at the end and insert ‘‘; and’’. 

Page 5, after line 25, insert the following: 

(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. 

Page, 7, strike line 16 and all that follows through the end of the 

bill and insert the following new sections: 

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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. 

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE SCHIFF OF

CALIFORNIA, OR HIS DESIGNEE, DEBATABLE FOR 40 MINUTES

Strike all after the enacting clause and insert the following: 

SECTION 1. ‘‘THREE STRIKES AND YOU’RE OUT’’ FOR ATTORNEYS WHO 

FILE FRIVOLOUS LAWSUITS. 

(a) SIGNATURE REQUIRED.—Every pleading, written motion, and 

other paper in any action shall be signed by at least 1 attorney of 

record in the attorney’s individual name, or, if the party is not represented by an attorney, shall be signed by the party. Each paper 

shall state the signer’s address and telephone number, if any. An 

unsigned paper shall be stricken unless omission of the signature 

is corrected promptly after being called to the attention of the attorney or party. 

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(b) CERTIFICATE OF MERIT.—By presenting to the court (whether 

by signing, filing, submitting, or later advocating) a pleading, written motion, or other paper, an attorney or unrepresented party is 

certifying that to the best of the person’s knowledge, information 

and belief, formed after an inquiry reasonable under the circumstances— (1) it is not being presented for any improper purpose, such 

as to harass or to cause unnecessary delay or needless increase 

in the cost of litigation; 

(2) the claims, defenses, and other legal contentions therein 

are warranted by existing law or by a non frivolous argument 

for the extension, modification, or reversal of existing law or 

the establishment of new law; and 

(3) the allegations and other factual contentions have evidentiary support or, if specifically so identified, are reasonable 

based on a lack of information or belief. 

(c) MANDATORY SANCTIONS.—

(1) FIRST VIOLATION.—If, after notice and a reasonable opportunity to respond, a court, upon motion or upon its own initiative, determines that subsection (b) has been violated, the 

court shall find each attorney or party in violation in contempt 

of court and shall require the payment of costs and attorneys 

fees. The court may also impose additional appropriate sanctions, such as striking the pleadings, dismissing the suit, and 

sanctions plus interest, upon the person in violation, or upon 

both such person and such person’s attorney or client (as the 

case may be). 

(2) SECOND VIOLATION.—If, after notice and a reasonable opportunity to respond, a court, upon motion or upon its own initiative, determines that subsection (b) has been violated and 

that the attorney or party with respect to which the determination was made has committed one previous violation of subsection (b) before this or any other court, the court shall find 

each such attorney or party in contempt of court and shall require the payment of costs and attorneys fees, and require 

such person in violation (or both such person and such person’s 

attorney or client (as the case may be)) to pay a monetary fine. 

The court may also impose additional appropriate sanctions, 

such as striking the pleadings, dismissing the suit and sanctions plus interest, upon such person in violation, or upon both 

such person and such person’s attorney or client (as the case 

may be). 

(3) THIRD AND SUBSEQUENT VIOLATIONS.—If, after notice and 

a reasonable opportunity to respond, a court, upon motion or 

upon its own initiative, determines that subsection (b) has 

been violated and that the attorney or party with respect to 

which the determination was made has committed more than 

one previous violation of subsection (b) before this or any other 

court, the court shall find each such attorney or party in contempt of court, refer each such attorney to one or more appropriate State bar associations for disciplinary proceedings (including suspension of that attorney from the practice of law for 

one year or disbarment), require the payment of costs and attorneys fees, and require such person in violation (or both such 

person and such person’s attorney, or client (as the case may 

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be)) to pay a monetary fine. The court may also impose additional appropriate sanctions, such as striking the pleadings, 

dismissing the suit, and sanctions plus interest, upon such person in violation, or upon both such person and such person’s 

attorney or client (as the case may be). 

(4) APPEAL; STAY.—An attorney has the right to appeal a 

sanction under this subsection. While such an appeal is pending, the sanction shall be stayed. 

(5) NOT APPLICABLE TO CIVIL RIGHTS CLAIMS.—Notwithstanding subsection (d), this subsection does not apply to an 

action or claim arising out of Federal, State, or local civil 

rights law or any other Federal, State, or local law providing 

protection from discrimination. 

(d) APPLICABILITY.—Except as provided in subsection (c)(5), this 

section applies to any paper filed on or after the date of the enactment of this Act in— (1) any action in Federal court; and 

(2) any action in State court, if the court, upon motion or 

upon its own initiative, determines that the action affects 

interstate commerce. 

SEC. 2. ‘‘THREE STRIKES AND YOU’RE OUT’’ FOR ATTORNEYS WHO ENGAGE IN FRIVOLOUS CONDUCT DURING DISCOVERY. 

(a) SIGNATURES REQUIRED ON DISCLOSURES.—Every disclosure 

made pursuant to subdivision (a)(1) or subdivision (a)(3) of Rule 26 

of the Federal Rules of Civil Procedure or any comparable State 

rule shall be signed by at least one attorney of record in the attorney’s individual name, whose address shall be stated. An unrepresented party shall sign the disclosure and state the party’s address. 

The signature of the attorney or party constitutes a certification 

that to the best of the signer’s knowledge, information, and belief, 

formed after a reasonable inquiry, the disclosure is complete and 

correct as of the time it is made. 

(b) SIGNATURES REQUIRED ON DISCOVERY.— (1) IN GENERAL.—Every discovery request, response, or objection made by a party represented by an attorney shall be 

signed by at least one attorney of record in the attorney’s individual name, whose address shall be stated. An unrepresented 

party shall sign the request, response, or objection and state 

the party’s address. The signature of the attorney or party constitutes a certification that to the best of the signer’s knowledge, information, and belief, formed after a reasonable inquiry, the request, response, or objection is: 

(A) consistent with the applicable rules of civil procedure 

and warranted by existing law or a good faith argument 

for the extension, modification, or reversal of existing law; 

(B) not interposed for any improper purpose, such as to 

harass or to cause unnecessary delay or needless increase 

in the cost of litigation; and 

(C) not unreasonable or unduly burdensome or expensive, given the needs of the case, the discovery already had 

in the case, the amount in controversy, and the importance 

of the issues at stake in the litigation. 

(2) STRICKEN.—If a request, response, or objection is not 

signed, it shall be stricken unless it is signed promptly after 

the omission is called to the attention of the party making the 

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request, response, or objection, and a party shall not be obligated to take any action with respect to it until it is signed. 

(c) MANDATORY SANCTIONS.— (1) FIRST VIOLATION.—If without substantial justification a 

certification is made in violation of this section, the court, upon 

motion or upon its own initiative, shall find each attorney or 

party in contempt of court and shall require the payment of 

costs and attorneys fees. The court may also impose additional 

sanctions, such as imposing sanctions plus interest or imposing 

a fine upon the person in violation, or upon such person and 

such person’s attorney or client (as the case may be). 

(2) SECOND VIOLATION.—If without substantial justification a 

certification is made in violation of this section and that the attorney or party with respect to which the determination is 

made has committed one previous violation of this section before this or any other court, the court, upon motion or upon its 

own initiative, shall find each attorney or party in contempt of 

court and shall require the payment of costs and attorneys 

fees, and require such person in violation (or both such person 

and such person’s attorney or client (as the case may be)) to 

pay a monetary fine. The court may also impose additional 

sanctions upon such person in violation, or upon both such person and such person’s attorney or client (as the case may be). 

(3) THIRD AND SUBSEQUENT VIOLATIONS.—If without substantial justification a certification is made in violation of this section and that the attorney or party with respect to which the 

determination is made has committed more than one previous 

violation of this section before this or any other court, the 

court, upon motion or upon its own initiative, shall find each 

attorney or party in contempt of court, shall require the payment of costs and attorneys fees, require such person in violation (or both such person and such person’s attorney or client 

(as the case may be)) to pay a monetary fine, and refer such 

attorney to one or more appropriate State bar associations for 

disciplinary proceedings (including the suspension of that attorney from the practice of law for one year or disbarment). 

The court may also impose additional sanctions upon such person in violation, or upon both such person and such person’s 

attorney or client (as the case may be). 

(4) APPEAL; STAY.—An attorney has the right to appeal a 

sanction under this subsection. While such an appeal is pending, the sanction shall be stayed. 

(d) APPLICABILITY.—This section applies to any paper filed on or 

after the date of the enactment of this Act in—

(1) any action in Federal court; and 

(2) any action in State court, if the court, upon motion or 

upon its own initiative, determines that the action affects 

interstate commerce. 

SEC. 3. 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 the interest outweighs any interest in the public health and safety that the 

court determines would be served by disclosing the court record. 

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(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. 

SEC. 4. ENHANCED SANCTIONS FOR DOCUMENT DESTRUCTION. 

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. 5. ABILITY TO SUE CORPORATE FINANCIAL TRAITORS AND FOREIGN CORPORATIONS. 

(a) GENERAL RULE.—In any civil action for injury that was sustained in the United States and that relates to the acts of a foreign 

business, the Federal court or State court in which such action is 

brought shall have jurisdiction over the foreign business if—

(1) the business purposefully availed itself of the privilege of 

doing business in the United States or that State; 

(2) the cause of action arises from the business’s activities in 

the United States or that State; and 

(3) the exercise of jurisdiction would be fair and reasonable. 

(b) ADMISSION.—If in any civil action a foreign business involved 

in such action fails to furnish any testimony, document, or other 

thing upon a duly issued discovery order by the court in such action, such failure shall be deemed an admission of any fact with respect to which the discovery order relates. 

(c) PROCESS.—Process in an action described in subsection (a) 

may be served wherever the foreign business is located, has an 

agent, or transacts business. 

(d) DEFINITION.—In this section, the term ‘‘foreign business’’

means a business that has its principal place of business, and substantial business operations, outside the United States and its Territories. 

SEC. 6. PRESUMPTION OF RULE 11 VIOLATION FOR REPEATEDLY RELITIGATING SAME ISSUE. 

(a) IN GENERAL.—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. 

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(b) EXCEPTION.—Subsection (a) does not apply to a claim arising 

under the Constitution of the United States. 

Æ