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CSHB 316(JUD): "An Act relating to civil liability for false claims and improper allegations or defenses in civil practice; amending Rules 13(e) and 37, Alaska Rules of Civil Procedure; and providing for an effective date."

00CS FOR HOUSE BILL NO. 316(JUD) 01 "An Act relating to civil liability for false claims and improper allegations or 02 defenses in civil practice; amending Rules 13(e) and 37, Alaska Rules of Civil 03 Procedure; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 09.65 is amended by adding a new section to read: 06  Sec. 09.65.190. CIVIL LIABILITY FOR FALSE CLAIMS AND IMPROPER 07 PRACTICE. (a) A person may not 08  (1) knowingly or recklessly file, or cause to be filed, a civil complaint, 09 answer, or other civil pleading that contains false or misleading allegations or material 10 misstatements of fact; 11  (2) sign a civil pleading before making reasonable inquiry and 12 determining that, to the best of the signer's knowledge, information, and belief, each 13 claim, defense, and allegation contained in the pleading is well grounded in fact and 14 is warranted by existing law or a good faith argument for the extension, modification,

01 or reversal of existing law; or 02  (3) interpose, in a civil action, a claim, defense, or allegation for an 03 improper purpose, including to harass or to cause unnecessary delay or needless 04 increase in the cost of litigation. 05  (b) If the court determines that a party to a civil action has intentionally made 06 a false statement of a material fact in connection with the prosecution or defense of 07 a civil action, the court shall enter judgment against the party making the false 08 statement on the issue to which the false statement relates. If the civil action involves 09 multiple claims and the false statement does not apply to all claims, the judgment 10 required under this section shall apply only to those claims to which the false 11 statement relates. 12  (c) A person who is injured by a violation of (a) of this section may bring an 13 action for compensatory damages. However, if the injury is the result of an act or 14 omission of a 15  (1) party, then the action shall be asserted in the same action in which 16 the injury arose; and 17  (2) nonparty, then the action shall be asserted in a separate action 18 commenced after entry of final judgment in the action in which the injury arose. 19  (d) A person who, on the person's own behalf or as a representative of a party, 20 takes part in the initiation, defense, continuation, or procurement of a civil action 21 against another is subject to civil liability for compensatory and punitive damages if 22 the person acts 23  (1) without probable cause on a claim or defense; or 24  (2) primarily for a purpose other than that of securing the proper 25 adjudication of a claim or defense involved in the civil action. 26  (e) An action to recover damages under (c) of this section may be pled by a 27 party to a civil action but may not be considered by the jury unless the person bringing 28 the action or defense is the prevailing party on the claim in question. 29  (f) A person may not bring a civil action to recover damages under (d) of this 30 section unless the person is the prevailing party and final judgment has been entered 31 in the civil action described in (d) of this section.

01 * Sec. 2. AS 09.65.190(a), as enacted by sec. 1 of this Act, has the effect of amending 02 Rule 13(e), Alaska Rules of Civil Procedure, by giving a person injured by a violation of 03 AS 09.65.190(a) the right to file a claim for compensatory damages after serving a pleading. 04 * Sec. 3. AS 09.65.190(b), added by sec. 1 of this Act, has the effect of amending Rule 05 37, Alaska Rules of Civil Procedure, by requiring the court to enter judgment against a party 06 making an intentional material false statement. 07 * Sec. 4. SEVERABILITY. Under AS 01.10.030, if any provision of this Act, or the 08 application of a provision of this Act to any person or circumstance is held invalid, the 09 remainder of this Act and the application to other persons shall not be affected. 10 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).