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Watching Government: Aiming at a litigation loophole

11/28/2011
The US House of Representatives' Judiciary Committee approved HR 1996, the Government Litigation Savings Act, on Nov. 17 by 19 to 14 votes. Chairman Lamar Smith (R-Tex.) said the 1980 Equal Access to Justice Act (EAJA), which HR 1996 would amend, was originally designed to help individuals and small businesses recover some of their legal costs when they successfully sued the federal government. "Whether the act is still mainly serving its original, legitimate purpose is in doubt," Smith said, adding, "Certain frequent litigants—particularly 501(c)(3) corporations that enjoy the additional benefit of being exempt from [EAJA's] net worth limitation—are financing their lawsuit...
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