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CSHB 316(FIN): "An Act relating to civil liability; amending Rules 13(e) and 82(b), Alaska Rules of Civil Procedure; and providing for an effective date."

00CS FOR HOUSE BILL NO. 316(FIN) 01 "An Act relating to civil liability; amending Rules 13(e) and 82(b), Alaska Rules 02 of Civil Procedure; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 09.65 is amended by adding a new section to read: 05  Sec. 09.65.190. CIVIL LIABILITY FOR FALSE CLAIMS AND IMPROPER 06 PRACTICE. (a) A person may not 07  (1) knowingly or recklessly file, or cause to be filed, a civil complaint, 08 answer, or other civil pleading that contains false allegations or material misstatements 09 of fact; 10  (2) sign a civil pleading before making reasonable inquiry and 11 determining that, to the best of the signer's knowledge, information, and belief, each 12 claim, defense, and allegation contained in the pleading is well grounded in fact and 13 is warranted by existing law or a good faith argument for the extension, modification, 14 or reversal of existing law; or

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

01 occurred. 02  (g) If a person brings an action under (c) or (d) of this section, the court shall 03 award actual reasonable attorney fees to the prevailing party, regardless of whether the 04 prevailing party is the plaintiff or defendant. 05 * Sec. 2. AS 09.65.190(c)(1), as enacted by sec. 1 of this Act, has the effect of amending 06 Rule 13(e), Alaska Rules of Civil Procedure, by requiring a claim under AS 09.65.190(a) that 07 is acquired after service of a pleading to be asserted in the same action. 08 * Sec. 3. AS 09.65.190(g), enacted in sec. 1 of this Act, has the effect of amending Rule 09 82(b), Alaska Rules of Civil Procedure, by allowing the award of actual reasonable attorney 10 fees in a civil action for false claims or improper civil practice. 11 * Sec. 4. SEVERABILITY. Under AS 01.10.030, if any provision of this Act, or the 12 application of a provision of this Act to any person or circumstance is held invalid, the 13 remainder of this Act and the application to other persons shall not be affected. 14 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).