The American Property Casualty Insurance Association (APCIA) has announced its support for two federal bills aimed at addressing legal system abuses and their impact on insurance costs and the broader economy.
APCIA has endorsed the Lawsuit Abuse Reduction Act of 2025 (H.R. 5258), 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 bill proposes changes to Rule 11 of the Federal Rules of Civil Procedure, including mandatory sanctions for frivolous lawsuits and the removal of the “safe harbor” provision that allows attorneys to withdraw meritless claims without penalty.
“Unchecked legal system abuse is driving up costs for consumers and businesses," said Sam Whitfield (pictured above), APCIA’s senior vice president of federal government relations and political engagement. "Too many baseless claims, filed by lawyers motivated by profit are clogging our legal system with unnecessary lawsuits, increasing costs and delaying swift resolution of genuine legal claims.”
Whitfield also said that small businesses are often burdened with unnecessary legal expenses as targets of frivolous lawsuits. He described the Lawsuit Abuse Reduction Act as “a vital reform that will help restore fairness and predictability to our courts by holding bad actors accountable and deterring frivolous litigation.”
APCIA has made legal system abuse and pricing innovation top advocacy priorities for 2025, with a focus on curbing third-party litigation funding, promoting risk-based pricing, and encouraging insurance market innovation.
David A. Sampson, APCIA’s president and CEO, has emphasized that litigation is becoming more expensive and more prevalent, with the injured party’s percentage of recovery declining as lawsuits are financed by outside parties. The association is also advocating for increased transparency and disclosure to ensure judicial outcomes are not overly influenced by profit motives.
In line with these efforts, APCIA supports new federal bills aimed at increasing litigation transparency, particularly regarding third-party litigation financing (TPLF) and foreign involvement in US civil lawsuits.
APCIA has also voiced support for the Forum Accountability and Integrity in Roadway (FAIR) Trucking Act (H.R. 5268), introduced by Reps. Ashley Hinson (IA-02), Tom Barrett (MI-07), and Brandon Gill (TX-26).
The FAIR Trucking Act seeks to address forum shopping and staged accidents, trends that have led to an increase in nuclear verdicts and liability costs for commercial carriers. The bill aims to ensure cases are heard in appropriate jurisdictions and to curb abusive legal tactics.
The association’s advocacy agenda for 2025 includes promoting resilience and sustainability initiatives to mitigate risks associated with natural catastrophes and addressing cost drivers in auto insurance. APCIA supports allowing innovation in areas such as artificial intelligence and cybersecurity under appropriate oversight to foster private market growth.
APCIA continues to highlight the need for increased transparency and disclosure in litigation funding, arguing that judicial outcomes should not be unduly influenced by profit motives. The association maintains that reforms in this area are essential for maintaining fairness in the legal system and protecting both consumers and insurers.
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