[Congressional Record Volume 141, Number 40 (Friday, March 3, 1995)]
[House]
[Page H2653]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               AMENDMENTS

  Under clause 6 of rule XXIII, proposed amendments were submitted as 
follows:

                                H.R. 988

                    Offered By: Mr. Bryant of Texas

       Amendment No. 1: Page 4, insert the following after line 21 
     and redesignate the succeeding paragraph accordingly:
       ``(8) This subsection applies only to a claim brought 
     against a small business concern as defined under section 3 
     of the Small Business Act.''.

                                H.R. 988

                         Offered By: Mr. Cardin

       Amendment No. 2: At the end of section 4, insert the 
     following:
       (c) subsection (a) and (b) shall apply to the United States 
     or any agency or any official of the United States acting in 
     his or her official capacity.

                                H.R. 988

                         Offered By: Ms. Harman

       Amendment No. 3: Page 2, line 9, strike ``offer'' and 
     insert ``reasonable offer made in good faith''.
                                H.R. 988

                          Offered By: Mr. Hoke

       Amendment No. 4: Page 6, after line 24 (after section 4) 
     insert the following:

     SEC. 5. CONTINGENT FEES OF ATTORNEYS.

       (a) In General.--Part III of title 28, United States Code, 
     is amended by adding at the end the following new chapter:

               ``CHAPTER 80--CONTINGENT FEES OF ATTORNEYS
``1051. Limitations on contingent fees.
[[Page H2652]] ``1052. Definition of qualifying settlement offer.
     ``Sec. 1051. Limitations on contingent fees

       ``(a) Effect of Qualifying Settlement Offer.--In any 
     Federal civil action (except an action for the protection of 
     civil rights, including the right to vote) in which a 
     monetary recovery is sought, the compensation to the attorney 
     representing a plaintiff--
       ``(1) shall, if a qualifying settlement offer is made to 
     and accepted by that plaintiff not exceed the lesser of--
       ``(A) the sum of--
       ``(i) a reasonable hourly rate, previously agreed upon by 
     the attorney and the plaintiff, for legal work actually 
     performed; and
       ``(ii) actual expenses of the attorney in the action; or
       ``(B) 10 percent of the amount of the accepted qualifying 
     settlement offer; and
       ``(2) shall, if no qualifying settlement offer is accepted 
     by that plaintiff, not exceed the sum of--
       ``(A) that portion not greater than 33 percent, agreed upon 
     by the attorney and the plaintiff before trial, of the amount 
     by which the final recovery in the action exceeds the amount 
     of the final qualifying settlement offer;
       ``(B) a reasonable hourly rate, previously agreed upon by 
     the attorney and the plaintiff, for legal work actually 
     performed before the final qualifying settlement offer is 
     made; and
       ``(C) actual expenses of the attorney in the action.

     ``Sec. 1052. Definition of qualifying settlement offer

       ``For the purposes of this chapter a qualifying settlement 
     offer is an offer by all defendants--
       ``(1) to settle all claims against the defendants in the 
     pending action; and
       ``(2) made not later than 60 days after the date of initial 
     contact in writing between the attorneys for the parties 
     notifying the defendant of the claim against the 
     defendant.''.
       (b) Clerical Amendment.--The table of chapters for part III 
     of title 28, United States Code, is amended by adding at the 
     end the following new item:

``80. Contingent Fees of Attorneys

1051''.................................................................

       Redesignate succeeding sections accordingly.
                                H.R. 988

                       Offered By: Mr. LaTourette

       Amendment No. 5: Page 6, line 24 (after section 4) insert 
     the following:

     SEC. 5. PROHIBITION OF CONTINGENCY FEES IN CASES OF 
                   UNDISPUTED LIABILITY.

       (a) In General.--If, not later than 180 days after the date 
     of initial contact, the defendant informs the plaintiff in 
     writing that the defendant no longer contest liability, the 
     compensation to the plaintiff's attorney shall not exceed a 
     reasonable hourly rate, previously agreed upon by the 
     attorney and the plaintiff, for legal work actually performed 
     in the action, and actual expenses of the attorney in the 
     action.
       (b) Enforcement.--Whoever is aggrieved by any violation of 
     this section may in a civil action recover appropriate 
     relief.
       (c) Definitions.--For the purposes of this section the term 
     ``initial contact'' means the receipt by the defendant of 
     notice of the claim sent by the plaintiff through registered 
     mail, return receipt requested, or commencement of the civil 
     action, whichever occurs first.
       Redesignate succeeding sections accordingly.

                                H.R. 988

                         Offered By: Mr. Parker
       Amendment No. 6: Beginning on page -- redesignate Sections 
     as Sections --, respectively, and insert at line -- on page 
     -- the following:

     SEC.     . 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 such attorney has entered into a contingency 
     fee agreement--
       (1) the actual services performed for such client in 
     connection with such agreement, and
       (2) the precise number of hours actually expended by such 
     attorney in the performance of such services.

                                H.R. 988

                   Offered By: Mr. Smith of Michigan

       Amendment No. 7: Page 4, at the end of line 5, add the 
     following:

     To the extent that the offeree does not pay the offeror's 
     costs and expenses, including attorneys' fees, as ordered by 
     the court, the attorney of the offeree shall be liable for 
     such costs, such expenses, and such fees.
                               H.R. 1058

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 1: Page 28, after line 2, insert the 
     following new section (and redesignate the succeeding 
     sections and conform the table of contents accordingly):

     SEC. 6. LIMITATIONS PERIOD FOR IMPLIED PRIVATE RIGHTS OF 
                   ACTION.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
     is amended by adding at the end the following new section:

     ``SEC. 37. LIMITATIONS PERIOD FOR IMPLIED PRIVATE RIGHTS OF 
                   ACTION.

       ``(a) In General.--Except as otherwise provided in this 
     title, an implied private right of action arising under this 
     title shall be brought not later than the earlier of--
       ``(1) 5 years after the date on which the alleged violation 
     occurred; or
       ``(2) 3 years after the date on which the alleged violation 
     was discovered.
       ``(b) Effective Date.--The limitations period provided by 
     this section shall apply to all proceedings pending on or 
     commenced after the date of enactment of this section.''.

                               H.R. 1075

                 Offered By: Mr. Frank of Massachusetts

       Amendment No. 1: Page 11, strike lines 17 through 24 and 
     insert the following:

     SEC. 107. SEVERAL LIABILITY FOR ECONOMIC AND NON-ECONOMIC 
                   LOSS.

       In any product liability action, the liability of each 
     defendant found to be less than 20 percent responsible for 
     the claimant's economic and noneconomic loss shall be several 
     only and shall not be joint. Each defendant found to be less 
     than 20 percent responsible shall be liable only for the 
     amount of economic and noneconomic loss attributable to such 
     defendant in direct proportion to such defendant's 
     proportional share of fault or responsibility for the 
     claimant's harm, as determined by the trier of fact.

                               H.R. 1075

                          Offered By: Mr. Roth

       Amendment No. 2: Page 13, redesignate section 110 as 
     section 111 and insert after line 2 on that page the 
     following (and conform the table of contents accordingly):

     SEC. 110. EXPEDITED PRODUCT LIABILITY SETTLEMENTS.

       (a) In General.--Any claimant may bring a civil action for 
     damages against a person for harm caused by a product 
     pursuant to applicable State law, except to the extent such 
     law is superseded by this title.
       (b) Settlement.--
       (1) Claimant.--Any claimant may, in addition to any claim 
     for relief made in accordance with State law, include in such 
     claimant's complaint an offer of settlement for a specific 
     dollar amount.
       (2) Defendant.--The defendant may make an offer of 
     settlement for a specific dollar amount within 60 days after 
     service of the claimant's complaint or within the time 
     permitted pursuant to State law for a responsive pleading, 
     whichever is longer, except that if such pleading includes a 
     motion to dismiss in accordance with applicable law, the 
     defendant may tender such relief to the claimant within 10 
     days
      after the court's determination regarding such motion.
       (3) Court action.--
       (A) Extension order.--In any case in which an offer of 
     settlement is made pursuant to paragraph (1) or (2), the 
     court may, upon motion made prior to the expiration of the 
     applicable period for response, enter an order extending such 
     period. Any such order shall contain a schedule for discovery 
     of evidence material to the issue of the appropriate amount 
     of relief, and shall not extend such period for more than 60 
     days. Any such motion shall be accomplished by a supporting 
     affidavit of the moving party setting forth the reasons why 
     such extension is necessary to promote the interests of 
     justice and stating that the information likely to be 
     discovered is material, and is not, after reasonable inquiry, 
     otherwise available to the moving party.
       (B) Defendant not accepting.--If the defendant, as offeree, 
     does not accept the offer of settlement made by a claimant 
     within the time permitted pursuant to State law for a 
     responsive pleading or, if such pleading includes a motion to 
     dismiss in accordance with applicable law, within 30 days 
     after the court's determination regarding such motion, and a 
     verdict is entered in such action equal to or greater than 
     the specific dollar amount of such offer of settlement, the 
     court shall enter judgment against the defendant and shall 
     include in such judgment an amount for the claimant's 
     reasonable attorney's fees and costs. Such fees shall be 
     offset against any fees owned by the claimant to the 
     claimant's attorney by reason of the verdict.
       (C) Claimant not accepting.--If the claimant, as offeree, 
     does not accept the offer of settlement made by a defendant 
     within 30 days after the date on which such offer is made and 
     a verdict is entered in such action equal to or less than the 
     specific dollar amount of such offer of settlement, the court 
     shall reduce the amount of the verdict in such action by an 
     amount equal to the reasonable attorney's fees and costs owed 
     by the defendant to the defendant's attorney by reason of the 
     verdict, except that the amount of such reductions shall not 
     exceed that portion of the verdict which is allocable
      to noneconomic loss and economic loss for which the claimant 
     has received or will receive collateral benefits.
       (D) Attorney's fees.--For purposes of this subparagraph, 
     attorney's fees shall be calculated on the basis of an hourly 
     rate which should not exceed that which is considered 
     acceptable in the community in which the attorney practices, 
     considering the attorney's qualifications and experience and 
     the complexity of the case.
       (c) Alternative Dispute Resolution Procedures.--In lieu of 
     or in addition to making an offer of settlement under 
     subsection (b), a claimant or defendant may, within the time 
     permitted for the making of such an offer under such section, 
     offer to proceed pursuant 
     [[Page H2653]] to any voluntary alternative dispute 
     resolution procedure established or recognized under the law 
     of the State in which the civil action for damages for harm 
     caused by a product is brought or under the rules of the 
     court in which such action is maintained.
       (d) Offeree Refusal.--If the offeree refuses to proceed 
     pursuant to such alternative dispute resolution procedure and 
     the court determines that such refusal was unreasonable or 
     not in good faith, the court shall assess reasonable 
     attorney's fees and costs against the offeree.
       (e) Rebuttable Presumption.--For the purposes of this 
     section, there shall be created a rebuttable presumption that 
     a refusal by an offeree to proceed pursuant to such 
     alternative dispute resolution procedure was unreasonable or 
     not in good faith, if a verdict is rendered in favor of the 
     offeror.
Vol. 141           WASHINGTON, FRIDAY, MARCH 3, 1995             No. 40
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                                 Senate


           (Legislative day of Wednesday, February 22, 1995)