[Congressional Record Volume 141, Number 67 (Tuesday, April 25, 1995)]
[Senate]
[Pages S5676-S5677]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                          AMENDMENTS SUBMITTED

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               COMMONSENSE PRODUCT LIABILITY FAIRNESS ACT

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               ABRAHAM (AND McCONNELL) AMENDMENT NO. 597

  Mr. ABRAHAM (for himself and Mr. McConnell) proposed an amendment to 
amendment No. 596 proposed by Mr. Gorton to the bill (H.R. 956) to 
establish legal standards and procedures for product liability 
litigation, and for other purposes; as follows:

       At the end of the pending amendment add the following new 
     title:
                    TITLE III--EQUITY IN LEGAL FEES

     SEC. 301. EQUITY IN LEGAL FEES.

       (a) Disclosure of Attorney's Fees Information.--
       (1) Definitions.--For purposes of this subsection--
       (A) the term ``attorney'' means any natural person, 
     professional law association, corporation, or partnership 
     authorized under applicable State law to practice law;
       (B) the term ``attorney's services'' means the professional 
     advice or counseling of or representation by an attorney, but 
     such term shall not include other assistance incurred, 
     directly or indirectly, in connection with an 
     [[Page S5677]] attorney's services, such as administrative or 
     secretarial assistance, overhead, travel expenses, witness 
     fees, or preparation by a person other than the attorney of 
     any study, analysis, report, or test;
       (C) the term ``claimant'' means any natural person who 
     files a civil action arising under any Federal law or in any 
     diversity action in Federal court and--
       (i) if such a claim is filed on behalf of the claimant's 
     estate, the term shall include the claimant's personal 
     representative; or
       (ii) if such a claim is brought on behalf of a minor or 
     incompetent, the term shall include the claimant's parent, 
     guardian, or personal representative;
       (D) the term ``contingent fee'' means the cost or price of 
     an attorney's services determined by applying a specified 
     percentage, which may be a firm fixed percentage, a graduated 
     or sliding percentage, or any combination thereof, to the 
     amount of the settlement or judgment obtained;
       (E) the term ``hourly fee'' means the cost or price per 
     hour of an attorney's services;
       (F) the term ``initial meeting'' means the first conference 
     or discussion between the claimant and the attorney, whether 
     by telephone or in person, concerning the details, facts, or 
     basis of the claim;
       (G) the term ``natural person'' means any individual, and 
     does not include an artificial organization or legal entity, 
     such as a firm, corporation, association, company, 
     partnership, society, joint venture, or governmental body; 
     and
       (H) the term ``retain'' means the act of a claimant in 
     engaging an attorney's services, whether by express or 
     implied agreement, by seeking and obtaining the attorney's 
     services.
       (2) Disclosure at initial meeting.--
       (A) In general.--An attorney retained by a claimant shall, 
     at the initial meeting, disclose to the claimant the 
     claimant's right to receive a written statement of the 
     information described under paragraph (3).
       (B) Waiver and extension.--The claimant, in writing, may--
       (i) waive the right to receive the statement required under 
     subparagraph (A); or
       (ii) extend the 30-day period referred to under paragraph 
     (3).
       (3) Information after initial meeting.--Subject to 
     paragraph (2)(B), within 30 days after the initial meeting, 
     an attorney retained by a claimant shall provide a written 
     statement to the claimant containing--
       (A) the estimated number of hours of the attorney's 
     services that will be spent--
       (i) settling or attempting to settle the claim or action; 
     and
       (ii) handling the claim through trial;
       (B) the basis of the attorney's fee for services (such as a 
     contingent, hourly, or flat fee basis) and any conditions, 
     limitations, restrictions, or other qualifications on the fee 
     the attorney determines are appropriate; and
       (C) the contingent fee, hourly fee, or flat fee the 
     attorney will charge the client.
       (4) Information after settlement.--
       (A) In general.--An attorney retained by a claimant shall, 
     within a reasonable time not later than 30 days after the 
     date on which the claim or action is finally settled or 
     adjudicated, provide a written statement to the claimant 
     containing--
       (i) the actual number of hours of the attorney's services 
     in connection with the claim;
       (ii) the total amount of the fee for the attorney's 
     services in connection with the claim; and
       (iii) the actual fee per hour of the attorney's services in 
     connection with the claim, determined by dividing the total 
     amount of the fee by the actual number of hours of attorney's 
     services.
       (B) Waiver and extension.--A client, in writing, may--
       (i) waive the right to receive the statement required under 
     subparagraph (A); or
       (ii) extend the 30-day period referred to under 
     subparagraph (A).
       (5) Failure to disclose.--Except with regard to a claimant 
     who provides a waiver under paragraph (2)(B) or (4)(B), a 
     claimant to whom an attorney fails to disclose information 
     required by this section may withhold 10 percent of the fee 
     and file a civil action for damages resulting from the 
     failure to disclose in the court in which the claim or action 
     was filed or could have been filed.
       (6) Other remedies.--This subsection shall supplement and 
     not supplant any other available remedies or penalties.
       (b) Effective Date.--This title shall take effect and apply 
     to claims or actions filed on and after the date occurring 30 
     days after the date of enactment of this Act.
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                       HOLLINGS AMENDMENT NO. 598

  Mr. HOLLINGS proposed an amendment to amendment No. 597 proposed by 
Mr. Abraham to the bill (H.R. 956) to establish legal standards and 
procedures for product liability litigation, and for other purposes; as 
follows:

       At the end of the matter proposed to be inserted, add the 
     following:

     SEC. 302. LIMITATIONS ON FEES.

       If an attorney at law brings a civil action or is engaged 
     to defend against any civil action, the attorney may not be 
     compensated for the legal services provided in connection 
     with that action at a rate in excess of $50 an hour.
                                 ______


                        BROWN AMENDMENT NO. 599

  Mr. GORTON (for Mr. Brown) proposed an amendment to amendment No. 596 
proposed by Mr. Gorton the bill H.R. 956, supra; as follows:

       At the appropriate place, insert the following new section:

     SEC.   . REPRESENTATIONS AND SANCTIONS UNDER RULE 11 FEDERAL 
                   RULES OF CIVIL PROCEDURE.

       (a) In General.--Rule 11 of the Federal Rules of Civil 
     Procedure is amended--
       (1) in subsection (b)(3) by striking out ``or, if 
     specifically so identified, are likely to have evidentiary 
     support after a reasonable opportunity for further 
     investigation or discovery'' and inserting in lieu thereof 
     ``or are well grounded in fact''; and
       (2) in subsection (c)--
       (A) in the first sentence by striking out ``may, subject to 
     the conditions stated below,'' and inserting in lieu thereof 
     ``shall'';
       (B) in paragraph (2) by striking out the first and second 
     sentences and inserting in lieu thereof the following: ``A 
     sanction imposed for violation of this rule may consist of 
     reasonable attorneys' fees and other expenses incurred as a 
     result of the violation, directives of a nonmonetary nature, 
     or an order to pay penalty into court or to a party.''; and
       (C) in paragraph (2)(A) by inserting before the period ``, 
     although such sanctions may be awarded against a party's 
     attorneys''.
       (b) Effective Date.--The provisions of this section shall 
     take effect 30 days after the date of the enactment of this 
     Act.
     

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