Lawsuit Abuse Reduction Act of 2025

Rule 11 establishes standards for pleadings, written motions, and other papers that are presented to a district court and establishes sanctions for an attorney, law firm, or party who does not comply with the standards. Under the Rule 11 standards, a pleading, written motion, or other paper must not be presented for an improper purpose and must make contentions that are reasonably supported by fact and law.

Currently, the purpose of sanctions is to deter future violations of the Rule 11 standards. Rule 11 authorizes judges to impose sanctions on an attorney, law firm, or party who fails to comply with the standards; allows awards of compensation to an injured party only when necessary for effective deterrence; and requires a motion for sanctions to be served on a party 21 days before it is filed in court, creating a 21-day "safe harbor" within which a party may withdraw or correct a filing that allegedly violates Rule 11 standards.

This bill amends Rule 11 to expressly state that the purpose of sanctions is to compensate the injured party as well as to deter future violations. The bill mandates sanctions for violations of the Rule 11 standards; requires sanctions to include compensation for the injured party for reasonable expenses incurred as a result of the violation, including attorneys' fees; and eliminates the 21-day safe harbor.