The American Property Casualty Insurance Association (APCIA) has announced its endorsement of the Lawsuit Abuse Reduction Act of 2025 (H.R.5258). This legislation, introduced by Representative Mike Collins from Georgia's 10th district and co-sponsored by Representatives Brandon Gill, Tom Tiffany, and Harriett Hageman, aims to amend Rule 11 of the Federal Rules of Civil Procedure. The proposed changes would enforce mandatory sanctions for frivolous lawsuits and remove the "safe harbor" provision that currently allows attorneys to retract meritless claims without facing penalties.
Sam Whitfield, APCIA’s senior vice president of federal government relations and political engagement, said: "Unchecked legal system abuse is driving up costs for consumers and businesses. Too many baseless claims, filed by lawyers motivated by profit are clogging our legal system with unnecessary lawsuits, increasing costs and delaying swift resolution of genuine legal claims. Targets of frivolous lawsuits, often small businesses, are also burdened with unnecessary legal expenses. The Lawsuit Abuse Reduction Act is a vital reform that will help restore fairness and predictability to our courts by holding bad actors accountable and deterring frivolous litigation."
The APCIA highlights that misleading legal advertising, inflated jury awards, and third-party litigation funding contribute significantly to a litigious environment in the U.S., which reportedly costs the economy over $557 billion annually. This situation increases household expenses by approximately $5,215 on average.
Whitfield further emphasized: "The misuse of the legal system has far-reaching economic consequences. By strengthening Rule 11, this legislation will help curb abusive tactics and promote a more balanced legal environment, ultimately benefiting consumers and preserving the integrity of our judicial system."
APCIA is urging Congress to pass H.R. 5258 promptly to eliminate meritless claims from the civil justice system while discouraging abusive litigation practices. The association continues to advocate for reforms that protect consumers and ensure transparency in civil litigation.
APCIA serves as a national trade association representing home, auto, and business insurers across various regions globally.
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