[Congressional Record Volume 141, Number 162 (Thursday, October 19, 1995)]
[Senate]
[Pages S15341-S15342]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BROWN:
  S. 1337. A bill to amend the Legal Services Corporation Act to limit 
frivolous lawsuits, and for other purposes; to the Committee on Labor 
and Human Resources.


        the legal services corporation act amendment act of 1995

 Mr. BROWN. Mr. President, I introduce a bill to bring the 
Legal Services Corporation in line with the obligations of every other 
attorney in America; that is, to allow the Legal Services Corporation 
to be sanctioned when its attorneys bring frivolous or meritless cases.

[[Page S 15342]]

  The Legal Services Corporation was created to provide for the 
everyday legal needs of the poor. Unfortunately, the LSC has digressed 
from its original function. Rather than taking care of the day to day 
needs of American families, the LSC has used its resources to challenge 
Federal programs, lobby government, and pursue costly class action 
lawsuits.
  In 1974, President Nixon cited three major objectives when he signed 
legislation to create the Legal Services Corporation. One was ``that 
the lawyers in the program have full freedom to protect the best 
interests of their clients in keeping with the Canon of Ethics and the 
high standards of the legal professions.'' Achieving that goal is 
precisely what this bill intends to do.
  The high standards of the legal professions include adhering to the 
Federal Rules of Civil Procedure. Rule 11, which applies to all 
attorneys, allows for sanctions against an attorney for any action 
designed to cause unnecessary delay or needlessly increase the cost of 
litigation, or when the plaintiff's action is frivolous or without 
legal foundation. If the LSC is providing legal services with Federal 
funds, one would assume it would be subject to these basic rules.
  Under current law, however, the Legal Services Corporation is 
protected from the rule 11 standard. The LSC can only be sanctioned if 
it is proven that an action was brought solely to harass another party, 
or that it maliciously abused the legal system. This standard is 
virtually impossible to prove and therefore lacks any deterrent effect. 
Furthermore, only actions are sanctionable--the LSC is completely 
protected from sanctions for baseless motions, pleadings, or other 
documents.
  If the Legal Services Corporation is going to provide federally 
funded legal services, it should live under the same laws as every 
other attorney in the United States. When an attorney enters any 
courtroom in the Nation, advocating a case without merit, he can be 
sanctioned by the court. It should not be any different for the Legal 
Services Corporation.
  The language of this bill would alter the Legal Services Corporation 
Act so that it parallels the Federal Rules of Civil Procedure. 
Specifically, it would allow courts to sanction the LSC according to 
the standards set forth in rule 11. Under the bill, sanctions would be 
allowed for any action, motion, pleading or other document that: First, 
is brought for improper purpose, such as to harass, cause unnecessary 
delay, or needlessly increase the cost of litigation; or second, is 
frivolous or not warranted by existing law.
  This new standard is not designed to preclude or replace rule 11 
sanctions against attorneys. Rather, it would provide an additional 
source of funds to compensate those parties forced to defend against 
baseless legal actions.
  in a society where litigation too often takes the place of 
negotiation, where the cost of a defense determines the outcome of a 
case, and where one lawsuit can bankrupt a law-abiding citizen, it is 
imperative that all parties play on the same legal field, including the 
Legal Services Corporation.
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