Small Business Calls on House to Pass Bill to Reduce Lawsuits

Date: March 10, 2017

NFIB is key voting passage of Lawsuit Abuse Reduction Act

For Immediate Release
Andrew Wimer, 202-314-2073 or 703-298-5938 (cell)
Follow NFIB on Twitter @NFIB

Washington, D.C. (March 10, 2016) – The National Federation of Independent Business (NFIB) today called on members of the House of Representatives to pass the Lawsuit Abuse Reduction Act, H.R. 720. NFIB sent a letter on Wednesday to members informing them that the measure will be considered a key vote for the 115th Congress.

“For small business owners, a frivolous lawsuit could mean the end of their business,” said NFIB President and CEO Juanita Duggan. “More than three-quarters of our members tell us that they are concerned about becoming the target of a meritless suit. The Lawsuit Abuse Reduction Act would provide critical protections that would protect small businesses from excessive legal fees.”

The Lawsuit Abuse Reduction Act would amend Rule 11 of the Federal Rules of Civil Procedure. The bill, by striking the “safe harbor” provision of the rule, would eliminate the ability of plaintiffs to withdraw their suit within 21 days of filing and avoid any sanctions. Defendants may incur significant legal expenses during that time period and find themselves without any recourse against a frivolous suit.

“We thank the leaders of the House and the Judiciary Committee for bringing this bill to the floor,” said Duggan. “Reducing lawsuits could have a real, positive effect on economic growth in the small business sector.”

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