The American Property Casualty Insurance Association (APCIA) has announced its support for the Lawsuit Abuse Reduction Act of 2025 (H.R.5258). The bill was introduced by Rep. Mike Collins (GA-10) and co-sponsored by Reps. Brandon Gill (TX-26), Tom Tiffany (WI-07), and Harriett Hageman (WY-AL). The legislation aims to amend Rule 11 of the Federal Rules of Civil Procedure.
Key Provisions of the Legislation
- Requires mandatory sanctions for frivolous lawsuits
- Eliminates the “safe harbor” provision that currently allows attorneys to withdraw meritless claims without consequence
APCIA’s Position
Sam Whitfield, APCIA’s senior vice president of federal government relations and political engagement, issued a statement underscoring the organization’s support. He emphasized that frivolous lawsuits drive up costs for consumers and businesses, delay the resolution of genuine claims, and impose unnecessary expenses on small businesses.
Whitfield described the proposed legislation as a reform that would help restore fairness and predictability to the courts by holding attorneys accountable and deterring abusive litigation practices.
Broader Concerns Highlighted by APCIA
APCIA pointed to several issues contributing to what it describes as a litigious environment:
- Misleading legal advertising
- Inflated jury awards
- Third-party litigation funding
According to the association, these practices cost the U.S. economy more than $557 billion annually, adding $5,215 to the average household’s expenses. APCIA also noted that these factors have contributed to rising insurance premiums and reduced availability of coverage.
Legislative Impact
Whitfield said that strengthening Rule 11 would help curb abusive tactics, promote a balanced legal environment, and preserve the integrity of the judicial system. APCIA is urging Congress to swiftly pass H.R.5258 to address meritless claims and deter abusive litigation practices.
About APCIA
The American Property Casualty Insurance Association is the primary national trade association for home, auto, and business insurers. With a history spanning 150 years, APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers. Its members represent a range of sizes, structures, and regions, protecting families, communities, and businesses in the U.S. and internationally.
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