Litigation reform bill introduced in House of Representatives.
A new litigation reform bill, identical to legislation endorsed by the American Institute of CPAs and the Coalition to Eliminate Abusive Securities Suits (CEASS), was introduced in the House of Representatives by Congressman Billy Tauzin (D-La.). The new bill, HR 417, was cosponsored by Congressmen Mike Parker (D-Miss.), Ralph Hall (D-Texas), J. Roy Rowland (D-Ga.), Clay Shaw (R-Fla.), Sonny Montgomery (D-Miss.), James Moran (D-Va.) and Ronald Machtley (R-R.I.). The legislation requires that judgments against codefendants who have not committed intentional fraud be based on their proportionate liability for the losses sustained rather than on their ability to pay most or all of the judgments. It also requires plaintiffs and attorneys to pay defendants' legal fees, under certain conditions, if their allegations are deemed meritless.
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|Publication:||Journal of Accountancy|
|Article Type:||Brief Article|
|Date:||Mar 1, 1993|
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