A bill under consideration in the US House of Representatives seeks to address litigation abuse by changing sanctions for frivolous lawsuits, while another measure aims to influence how litigation involving commercial truckers is managed.
Property and casualty insurance trade associations have voiced support for both legislative efforts, stating that limiting litigation abuses could improve coverage affordability and expedite legitimate claims.
The Lawsuit Abuse Reduction Act of 2025 would make sanctions against those filing frivolous lawsuits mandatory, rather than discretionary. The bill would require payments for expenses, including attorney fees, to parties harmed by frivolous lawsuits.
It would also allow for additional sanctions, such as striking pleadings, dismissing cases, and imposing financial penalties, according to Rep. Mike Collins, a Republican from Georgia's 10th District.
The proposed legislation would eliminate the current 21-day period that prevents sanctions from being filed when a complaint is withdrawn or corrected, instead permitting motions for sanctions to be filed immediately.
Sam Whitfield (pictured above), senior vice president of federal government relations and political engagement for the American Property Casualty Insurance Association, said, “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.”
The National Association of Mutual Insurance Companies has argued that the bill would help lower the so-called “tort tax,” which increases the cost of products and services for consumers.
Jimi Grande, NAMIC’s senior vice president of federal and political affairs, said, “Reducing frivolous lawsuits benefits everyone but the bad actors abusing our system. The Lawsuit Abuse Reduction Act will help ease the financial burdens out-of-control litigation puts on consumers and reduce the number of cases clogging our legal system.”
A separate bill, the Forum Accountability and Integrity in Roadway Trucking Act, would prevent forum shopping and ensure lawsuits involving commercial truckers are heard in federal courts.
Rep. Ashley Hinson, a Republican from Iowa’s 2nd District, said the bill would require federal courts to hear cases involving interstate commerce, where at least one litigant is from a different state and the amount in controversy exceeds $5 million, excluding interest and costs.
Recent analysis from the Insurance Information Institute estimates that excess litigation value from motor vehicle tort cases in the US reached $42.8 billion between 2014 and 2023.
Tort cases accounted for 33.8% of all federal civil case filings during that period, up from 18.8% in the previous decade, with motor vehicle tort filings growing at a compound annual growth rate of 4.9%.
In response to mounting litigation and its impact on insurance pricing, several states have enacted or proposed tort reform measures. Georgia, for example, recently passed a law revising negligent security liability standards, increasing transparency in third-party litigation funding, and banning certain tactics in pain-and-suffering awards.
Louisiana lawmakers have advanced bills to allow juries to see both billed and paid medical costs and to amend the comparative fault system.
What are your thoughts on this story? Please feel free to share your comments below.
