May 19, 2004

Sen. Lindsey Graham (R-S.C.) has introduced legislation that would provide for a modified "loser pays" rule in federal courts. It's of the "offer-of-settlement-driven" variety, and would expose litigants to a possible fee shift if they turned down a settlement offer and then did less well at trial. "Loser pays' does more to stop frivolous lawsuits in the federal court system than any other reform," Graham said. "Litigation designed to shake someone down for a settlement would be far less frequent if each party had something to lose." And: "The culture of suing anybody about anything with no consequences to yourself has to change." (Amy Geier Edgar, "Graham urges reform to curb frivolous suits", AP/Myrtle Beach (S.C.) Sun-News, Mar. 2).

[cross-posted from Overlawyered, where it ran Mar. 23, 2004]