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U.S. PIRG Consumer Blog

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October 10, 2005

House Gas Bill Has Unfair "Loser Pays" Provision

On Friday the U.S. House narrowly passed (vote here, with public interest vote= NAY) the controversial Gasoline for America's Security Act, HR 3893, after leadership held the voting machine open for over 40 minutes on a nominal 5-minute vote while it twisted arms. If enacted, a little-noticed "loser pays" provision would reverse centuries of U.S. jurisprudence and require citizen groups to pay attorneys' fees of the prevailing parties (the government and the oil companies) if they lose legitimate (non-frivolous) lawsuits brought in good faith against oil refinery and pipeline projects.

The "tort deform" provision threat would deter legitimate challenges to anti-environmental projects. The provision appears to be a one-way provision-- if the oil companies lose, they do not pay. Here's a letter specifically in opposition to the "loser pays" provision from U.S. PIRG and other leading groups. Of course, there is much more that is objectionable in the Gas Act. U.S. PIRG outlines real energy solutions in a September report, called Solutions to America’s Oil Crisis: A Federal Agenda for Reducing Oil Demand and Protecting Consumers.

Posted by Ed Mierzwinski at October 10, 2005 12:41 PM


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