This bill proposes the addition of a new section, 56-4-72, to the Code of West Virginia, aimed at providing compensation to victims of abusive lawsuits. It allows a prevailing party in a civil action to request the court to award reasonable attorneys' fees and costs upon the dismissal of a claim that lacks any basis in law or fact. The court is required to grant these fees if it finds that the claim was presented for an improper purpose, was unwarranted under existing law, or was based on unsupported allegations that were not promptly withdrawn. The bill also outlines considerations for the court when determining whether to award fees, including the habitual filing of frivolous claims by the party or attorney involved.

Additionally, the bill stipulates that the awarded fees should not exceed the costs incurred due to the abusive conduct and may be imposed on the attorney of the represented party, with law firms held jointly responsible for their employees' actions. It provides conditions under which the court may reduce or deny the fee award, such as if the party can demonstrate that the award would impose an unreasonable burden. The section is set to take effect on January 1, 2027, and will apply to claims filed on or after that date.

Statutes affected:
Introduced Version: 56-4-72