Tuesday, May 01, 2012

Tennessee legislature moves bill to impose legal costs in baseless suits.



The Tennessean (4/29) reported that Tennessee lawmakers "last week approved legislation [HB 3124] that would penalize people who file lawsuits that are later dismissed as baseless. They would have to pay up to $10,000 to cover court costs and their opponent's attorney fees. The legislation is the latest in a series of GOP efforts over the past year aimed at reducing a business' exposure in civil lawsuits," following enactments last year that capped non-economic damages at $750,000 and punitive damages at $500,000, with some exceptions. The measure passed the House 58-38, and cleared the Senate on a 17-12 vote. If signed by the governor, it would take effect for suits filed July 1 or later. A Republican sponsor called the measure a "very limited" loser-pays measure; another claimed it would relieve court backlogs and discourage baseless lawsuits. Democrats opposing it said it would limit access to courts. As passed, the bill would not apply to actions against government entities or lawsuits aimed at overturning current law.

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