NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

LFC files

Administrative Office of the Courts analysis

SUMMARY

Synopsis of Bill

House Bill 527 provides for the award of court costs and attorney fees in civil cases where the court decides that the action has been filed without substantial justification, for the purpose of delay or harassment, or otherwise unnecessarily expands the action by improper conduct, including abuse of discovery procedures. Claims or defenses in civil actions that are frivolous, groundless in fact or in law or vexatious are considered "without substantial justification".

Significant Issues

House Bill 527 provides that, in determining whether to assess costs or attorney fees, the court shall exercise its discretion and consider: the validity of a claim or defense before it was asserted; the effort made to reduce the number of claims or defenses being asserted; the availability of facts to determine the validity of a claim or defense; the financial position of the parties involved; and the extent to which a claim or defense was asserted in a good-faith attempt to establish a new theory of law.

FISCAL IMPLICATIONS

BOC/gm