Title: Lawsuit Abuse Reduction Act of 2017
Policy area: Law

Summary:
Lawsuit Abuse Reduction Act of 2017
This bill amends the sanctions provisions in Rule 11 of the Federal Rules of Civil Procedure to require the court to impose an appropriate sanction on any attorney, law firm, or party that has violated, or is responsible for the violation of, the rule with regard to representations to the court. Any sanction must compensate parties injured by the conduct in question.
The bill removes a provision that prohibits filing a motion for sanctions if the challenged paper, claim, defense, contention, or denial is withdrawn or appropriately corrected within 21 days after service or within another time the court sets.
Courts may impose additional sanctions, including striking the pleadings, dismissing the suit, nonmonetary directives, or penalty payments if warranted for effective deterrence.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 237 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 237

  To amend Rule 11 of the Federal Rules of Civil Procedure to improve 
            attorney accountability, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 30, 2017

Mr. Grassley (for himself and Mr. Rubio) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
  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 
2017''.

SEC. 2. ATTORNEY ACCOUNTABILITY.

    (a) Sanctions Under Rule 11.--Rule 11(c) of the Federal Rules of 
Civil Procedure is amended--
            (1) in paragraph (1), by striking ``may'' and inserting 
        ``shall'';
            (2) in paragraph (2), by striking ``Rule 5'' and all that 
        follows through ``motion.'' and inserting ``Rule 5.''; and
            (3) in paragraph (4), by striking ``situated'' and all that 
        follows through the end of the paragraph and inserting 
        ``situated, and to compensate the parties that were injured by 
        such conduct. Subject to the limitations in paragraph (5), the 
        sanction shall consist of an order to pay to the party or 
        parties the amount of the reasonable expenses incurred as a 
        direct result of the violation, including reasonable attorneys' 
        fees and costs. The court may also impose additional 
        appropriate sanctions, such as striking the pleadings, 
        dismissing the suit, or other directives of a non-monetary 
        nature, or, if warranted for effective deterrence, an order 
        directing payment of a penalty into the court.''.
    (b) Rule of Construction.--Nothing in this Act or an amendment made 
by this Act shall be construed to bar or impede the assertion or 
development of new claims, defenses, or remedies under Federal, State, 
or local laws, including civil rights laws, or under the Constitution 
of the United States.
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