Federal Legislation

The Forum Accountability and Integrity in Roadway (FAIR) Trucking Act  (H.R. 5268)

 The bill would halt the abusive practice of “forum shopping” by granting federal courts jurisdiction over truck crash cases when the matter involves interstate commerce, the amount being sought exceeds $5 million, and at least one defendant and one plaintiff are from different states.  Sponsored by Reps. Ashley Hinson (R-IA), Tom Barrett (R-MI), and Brandon Gill (R-TX)

Staged Accident Fraud Prevention Act (H.R. 2662)

The bill would make it a federal crime to purposefully crash into a commercial motor vehicle, establishing straightforward criminal penalties not just for the drivers who stage these collisions – but also for the attorneys, physicians, and other co-conspirators who knowingly participate in the fraud to extort victimized motor carriers.  Sponsored by Reps. Mike Collins (R-GA) and Brandon Gill (R-TX).

Tackling Predatory Litigation Funding Act (S. 1821 / H.R. 3512)

The bill would impose a new tax on profits earned by third-party entities that finance civil litigation and curb predatory practices in the litigation funding industry. Third-party litigation financing profits would be taxed at the highest individual income tax rate (37%) plus 3.8%. The tax would only apply to third-party funders of lawsuits with formal financing agreements and would not apply to lawyers or parties directly involved in the case. Deals under $10,000 or simple loans would be excluded. Sponsored by Sen. Thom Tillis (R-NC) and Rep. Kevin Hern (R-OK).

The Protecting Third-Party Litigation Funding from Abuse Act (H.R. 7015)

 The bill would require the disclosure of investors receiving payment based on the outcome of a case.  It would also require disclosure of the financing agreement between investors and parties to these civil actions.  Sponsored by Reps. Darrell Issa (R-CA) and Michael Baumgartner(R-WA).

The Protecting Our Courts from Foreign Manipulation Act (H.R. 2675)

The bill would require transparency to courts, to the parties, and to the Department of Justice when foreign persons and entities invest in litigation in the U.S. and would prohibit foreign governments and sovereign wealth funds from investing in U.S. lawsuits.    Sponsored by Reps. Ben Cline (R-VA), John Moolenaar (R-MI), Raja Krishnamoorthi (D-IL), Dusty Johnson (R-SD), Rob Wittman (R-VA), and Don Davis (D-NC).

The Lawsuit Abuse Reduction Act (H.R. 5258)

The bill would mandate sanctions for filing frivolous lawsuits.  The goal of the bill is to deter lawyers from filing meritless claims and forces them to compensate parties for the costs and fees incurred from defending against such lawsuits, thereby discouraging “legalized extortion” where plaintiff attorneys file speculative lawsuits with the plan to extract a quick monetary settlement.  Sponsored by Reps. Mike Collins (R-GA), Tom Tiffany (R-WI), Brandon Gill (R-TX), and Harriet Hageman (R-WY).