Small Business Often the Target of Baseless Suits
Frivolous lawsuits create a climate of fear for America’s small businesses. While some claims are legitimate, a large percentage are completely without merit. However, individuals and entities that are sued still have to defend themselves, and this defense is often costly to both business and consumers. Individuals and attorneys who file baseless claims and victimize innocent people should be held accountable for their actions.
Since 1993, Rule 11 of the Federal Rules of Civil Procedure, which helped to prevent frivolous filings, has been hamstrung by changes that loosened its effectiveness. Because of the changes, parties and their counsel are allowed to avoid sanctions simply by withdrawing their frivolous claims within 21 days. This change has removed real incentives for attorneys to avoid frivolous filings.
