Lawsuit Abuse Reduction Act of 2025
The Lawsuit Abuse Reduction Act of 2025 amends Rule 11 to make sanctions for attorney misconduct mandatory, requiring courts to order the payment of a party’s reasonable expenses (including attorneys’ fees) and allowing additional sanctions or penalties to deter abuse. It also updates procedural rules related to sanctions (alignment with Rule 5) and clarifies that these changes do not bar legitimate new claims or defenses.
Key Points
- 1Makes sanctions under Rule 11 mandatory (changes from “may” to “shall” in certain provisions).
- 2Expands sanctions to require payment of reasonable expenses to harmed parties, including attorneys’ fees, and permits non-monetary sanctions or penalties.
- 3Updates and aligns the sanction process with Rule 5 (service/timing) and preserves the right to pursue valid new claims or defenses.
The Lawsuit Abuse Reduction Act of 2025 would tighten consequences for abusive or groundless filings by attorneys in federal court. Specifically, it amends Rule 11 of the Federal Rules of Civil Procedure to make certain sanctions mandatory (instead of optional) for violators, require the paying party to cover the other side’s reasonable expenses (including attorneys’ fees) directly caused by the violation, and authorize non-monetary sanctions or penalties meant to deter such conduct. The bill also includes a construction stating that it does not bar new claims, defenses, or remedies under federal, state, or local law, including civil rights laws or the Constitution. In short, the bill increases attorney accountability by mandating monetary sanctions to recoup the injured party’s costs and permitting additional sanctions to deter frivolous or improper filings.
Key Points
- 1Mandatory sanctions: The bill changes Rule 11(c) so certain sanctions “shall” be imposed, not merely permitted.
- 2Recovery of expenses: Sanctions must include payment to the affected party of reasonable expenses directly resulting from the violation, including attorneys’ fees and costs.
- 3Range of sanctions: In addition to monetary sanctions, courts may impose non-monetary sanctions (e.g., striking pleadings, dismissing the case) or order a penalty to be paid into the court if warranted for deterrence.
- 4Reference to Rule 5: The bill adjusts the language around Rule 5 (filings and service) within Rule 11’s sanction provisions to clarify the scope of apply.
- 5Construction clause: The act does not bar new claims, defenses, or remedies under any federal, state, or local law, or under the Constitution.