[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 988 Introduced in House (IH)]

  1st Session
                                H. R. 988

              To reform the Federal civil justice system.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 16, 1995

Mr. Moorhead (for himself, Mr. Hyde, and Mr. Goodlatte) introduced the 
  following bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
              To reform the Federal civil justice system.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Attorney Accountability Act of 
1995''.

SEC. 2. AWARD OF ATTORNEY'S FEE TO PREVAILING PARTY IN FEDERAL CIVIL 
              DIVERSITY LITIGATION.

    Section 1332 of title 28, United States Code, is amended by adding 
at the end the following:
    ``(e)(1) The district court that exercises jurisdiction in a civil 
action commenced under this section shall award to the party that 
prevails with respect to a claim in the action an attorney's fee 
determined in accordance with paragraph (2). A party shall be deemed to 
prevail with respect to a claim in an action if--
            ``(A) a judgment, verdict, or order issued by the court 
        that is in that party's favor with respect to that claim has 
        become final, and that judgment, verdict, or order is more 
        favorable than any offer of judgment that was made on that 
        claim pursuant to Rule 68 of the Federal Rules of Civil 
        Procedure and was not accepted; or
            ``(B) that party made an offer of judgment on that claim 
        pursuant to Rule 68 of the Federal Rules of Civil Procedure 
        that was not accepted, and a judgment, verdict, or order issued 
        thereafter by the court that has become final is in another 
        party's favor with respect to that claim but is less favorable 
        than the offer of judgment.
    ``(2) An attorney's fee awarded under paragraph (1) with respect to 
a claim shall be a reasonable attorney's fee attributable to the claim, 
calculated on the basis of an hourly rate which may not exceed that 
which the court considers acceptable in the community in which the 
attorney practices law, taking into account the attorney's 
qualifications and experience and the complexity of the case, except 
that the fee awarded under paragraph (1) may not exceed--
            ``(A) the actual cost incurred by the nonprevailing party 
        for an attorney's fee payable to an attorney for services in 
        connection with the claim; or
            ``(B) if no such cost was incurred by the nonprevailing 
        party due to a contingency fee agreement, a reasonable cost 
        that would have been incurred by the nonprevailing party for an 
        attorney's noncontingent fee payable to an attorney for 
        services in connection with the claim.
    ``(3) Notwithstanding paragraphs (1) and (2), the court in its 
discretion may refuse to award, or may reduce the amount awarded as, an 
attorney's fee under paragraph (1) to the extent that the court finds 
special circumstances that make an award of an attorney's fee 
determined in accordance with paragraph (1) unjust or inequitable.''.

SEC. 3. HONESTY IN EVIDENCE.

    Rule 702 of the Federal Rules of Evidence (28 U.S.C. App.) is 
amended--
            (1) by inserting ``(a) In general.'' before ``If'', and
            (2) by adding at the end the following:
    ``(b) Adequate basis for opinion. Testimony in the form of an 
opinion by a witness that is based on scientific knowledge shall be 
inadmissible in evidence unless the court determines that such 
opinion--
            ``(1) is scientifically valid and reliable;
            ``(2) has a valid scientific connection to the fact it is 
        offered to prove; and
            ``(3) is sufficiently reliable so that the probative value 
        of such evidence outweighs the dangers specified in rule 403.
    ``(c) Disqualification. Testimony by a witness who is qualified as 
described in subdivision (a) is inadmissible in evidence if the witness 
is entitled to receive any compensation contingent on the legal 
disposition of any claim with respect to which the testimony is 
offered.
    ``(d) Scope. Subdivision (b) does not apply to criminal 
proceedings.''.

SEC. 4. ATTORNEY ACCOUNTABILITY.

    (a) Truth in Attorneys' Fees.--It is the sense of the Congress that 
each State should require, under penalty of law, each attorney admitted 
to practice law in such State to disclose in writing, to any client 
with whom the attorney has entered into a contingency fee agreement--
            (1) the actual services performed for the client in 
        connection with such agreement, and
            (2) the precise number of hours actually expended by the 
        attorney in the performance of such services.
As used in this subsection, the term ``State'' includes the District of 
Columbia, the Commonwealth of Puerto Rico, and the territories of the 
United States.
    (b) Amendment to the Federal Rules of Civil Procedure.--
            (1) Sanctions.--Rule 11(c) of the Federal Rules of Civil 
        Procedure (28 U.S.C. App.) is amended--
                    (A) in the matter preceding paragraph (1) by 
                striking ``may'' and inserting ``shall'';
                    (B) in paragraph (1)(A)--
                            (i) in the second sentence by striking ``, 
                        but shall'' and all that follows through 
                        ``corrected''; and
                            (ii) in the third sentence by striking 
                        ``may'' and inserting ``shall''; and
                    (C) in paragraph (2) by striking the matter 
                preceding subparagraph (A) and inserting the following: 
                ``A sanction imposed for a violation of this rule shall 
                be sufficient to deter repetition of such conduct or 
comparable conduct by others similarly situated, and to compensate the 
parties that were injured by such conduct. Subject to the limitations 
in subparagraphs (A) and (B), the sanction may consist of an order to 
pay to the other party or parties the amount of the reasonable expenses 
incurred as a direct result of the filing of the pleading, motion, or 
other paper that is the subject of the violation, including a 
reasonable attorney's fee.''.
            (2) Applicability to discovery.--Rule 11 of the Federal 
        Rules of Civil Procedure is amended by striking subdivision 
        (d).

SEC. 5. NOTICE REQUIRED BEFORE COMMENCEMENT OF CIVIL ACTION.

    (a) In General.--Chapter 99 of title 28, United States Code is 
amended by adding at the end the following:
Sec. 1632. Notice required before commencement of civil action
    ``(a) Dismissal of Civil Action.--Except as provided in subsection 
(c), the district court in which a civil action is commenced shall 
dismiss the action with respect to a defendant, without prejudice, if--
            ``(1) not later than 60 days after the action is commenced, 
        the defendant files a motion to dismiss the action on the basis 
        that the plaintiff failed to comply with the requirement 
        specified in subsection (b); and
            ``(2) the plaintiff fails to establish that before 
        commencing the action the plaintiff complied with such 
        requirement.
    ``(b) Requirement.--Not less than 30 days before commencing a civil 
action in a district court of the United States, the plaintiff shall 
transmit (by 1st class mail, postage prepaid, or contract for delivery 
by any organization that in its regular course of business physically 
delivers correspondence as a commercial service to the public) to the 
defendant (at an address reasonably calculated to provide actual notice 
to the defendant) a written statement specifying the particular claims 
alleged in the action and the amount of damages claimed in the action.
    ``(c) Exceptions.--Subsection (a) shall not apply with respect to 
any civil action--
            ``(1) to seize or forfeit assets subject to forfeiture;
            ``(2) commenced under title 11;
            ``(3) commenced to establish a receivership or 
        conservatorship;
            ``(4) based on the insolvency of the defendant, or the need 
        to liquidate assets of the defendant to satisfy any requirement 
        under Federal law;
            ``(5) if assets that are subject to the action or that 
        would satisfy a judgment in the action are likely to be 
        removed, dissipated, or destroyed by the defendant;
            ``(6) if the defendant is likely to flee;
            ``(7) if prior written notice of the filing of the action 
        is required by any other law;
            ``(8) to enforce a civil investigative demand or an 
        administrative summons;
            ``(9) if the action is--
                    ``(A) to foreclose a lien;
                    ``(B) to obtain a temporary restraining order or 
                preliminary injunction; or
                    ``(C) to prevent the fraudulent conveyance of 
                property;
            ``(10) if documents that may be evidence in the action are 
        likely to be destroyed by the defendant; or
            ``(11) if the action involves exigent circumstances that 
        compel immediate resort to the court.
    ``(d) Statute of Limitations.--
            ``(1) Suspension Before Commencement of Action.--If the 
        statute of limitations applicable to a claim would expire in 
        the 30-day period beginning on the date the plaintiff transmits 
        the notice required by subsection (b), such statute shall be 
        suspended--
                    ``(A) during that 30-day period; or
                    ``(B) during the 90-day period beginning on the 
                date the plaintiff so transmits the notice if, during 
                that 30-day period, the parties to the action so agree 
                in writing.
            ``(2) Filing Civil Action After Dismissal.--If--
                    ``(A) a civil action is timely commenced in a 
                district court with respect to a claim,
                    ``(B) the action is dismissed under subsection (a), 
                and
                    ``(C) the statute of limitations applicable to the 
                claim expires before the expiration of the 60-day 
                period beginning on the date the action is dismissed,
        then the plaintiff in the action may commence a civil action 
        based on the claim during that 60-day period notwithstanding 
        the statute of limitations.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of chapter 99 of title 28, United States Code, is amended by adding at 
the end the following:

``1632. Notice required before commencement of civil action.''.

SEC. 6. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Subject to subsection (b), this Act and the 
amendments made by this Act shall take effect on the first day of the 
first month beginning more than 180 days after the date of the 
enactment of this Act.
    (b) Application of Amendments.--
            (1) The amendments made by sections 2 and 5 shall apply 
        only with respect to civil actions commenced after the 
        effective date of this Act.
            (2) The amendments made by section 3 shall apply only with 
        respect to cases in which a trial begins after the effective 
        date of this Act.
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