,i #aaith ,,congress #ast ,session ,h4 ,r4 #cbac ,,in ,,the ,,house ,,of ,,representatives ,may #f1 #bjbe,mr4 ,fitzgerald introduced the following bill2 which was referred to the ,committee on the ,judiciary1 and in addition to the ,committee on ,financial ,services1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to protect ,state and ,federal courts' primary and inherent authority to regulate and oversee the legal profession by prohibiting ,federal agencies from regulating licensed attorneys and law firms engaged in litigation activities1 prohibiting opposing parties in legal actions from bringing private rights of action against such attorneys and law firms for their litigation activities1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,restoring ,court ,authority ,over ,litigation ,act of #bjbe4 #b4 ,findings2 ,sense of ,congress 7a7 ,in general ,congress finds the following3 7#a7 ,for many decades1 attorneys engaged in the practice of law have been regulated and disciplined primarily by the highest court of the ,state in which the attorney is licensed or admitted to practice1 attorney disciplinary agencies overseen by those courts1 and other ,state and ,federal courts of competent jurisdiction pursuant to the applicable statutes1 rules of civil procedure1 and rules of professional conduct and disciplinary procedure duly adopted in those jurisdictions1 and not by ,congress1 ,federal agencies1 or private litigants4 7#b7 ,state supreme courts have promulgated and enforced extensive and effective regulations governing all aspects of the practice of law1 including admission requirements1 strict attorney rules of professional conduct1 disciplinary rules1 and litigation procedural rules4 ,in addition1 ,federal courts have adopted local rules governing the conduct of attorneys appearing before them4 ,as a result1 ,state and ,federal courts have extensive authority and tools to address attorney misconduct that occurs during the course of litigation before them1 including monetary sanctions1 striking offending pleadings or other papers1 or referring the matter to disciplinary authorities1 which could lead to a reprimand1 censure1 license suspension1 disbarment1 or other available disciplinary sanctions4 7#c7 ,consistent with the longstanding principle of judicial regulation and oversight of attorneys and the legal profession1 numerous ,federal agencies have included broad practice of law exclusions in major rules1 including the ,federal ,trade ,commission's ,mortgage ,assistance ,relief ,services ,rule issued in ,november #bjaj and the ,department of ,housing and ,urban ,development's ,secure and ,fair ,enforcement for ,mortgage ,licensing ,act ,rule issued in ,june #bjaa4 7#d7 ,also consistent with the principle of judicial regulation of attorneys and the legal profession1 ,congress has generally declined to enact legislation regulating the practice of law1 including litigation activities of attorneys4 7#e7 ,congress has also incorporated broad practice of law exclusions into certain ,federal statutes4 ,for example1 section #ajbg7;e7 of the ,consumer ,financial ,protection ,act of #bjaj excludes most attorneys engaged in the practice of law from the ,consumer ,financial ,protection ,bureau's regulatory and enforcement authority1 while the ,fair ,debt ,collection ,practices ,act of #aigg originally contained a complete exemption for attorneys engaged in the practice of law4 7#f7 ,although ,congress removed the complete attorney exemption from the ,fair ,debt ,collection ,practices ,act in #aihf based in part on its belief that the revised ,act would only apply to attorneys' non-litigation collection activities and that ,state courts would continue to regulate attorneys' litigation activities1 the ,united ,states ,supreme ,court held in ,heintz v4 ,jenkins1 #ead ,u4,s4 #bia 7#aiie71 that attorneys could be subject to the ,act even when they are engaged in litigation activities4 ,as a result1 many attorneys now are routinely sued for litigation activities in ,state court that are alleged to be technical violations of the ,act1 even when consumers suffer no harm4 7#g7 ,in each of its annual reports to ,congress on the ,fair ,debt ,collection ,practices ,act from #aiih through #bjjf1 the ,federal ,trade ,commission formally recommended that ,congress reexamine and amend the definition of debt collector in the ,act to exempt attorneys who pursue debtors solely through litigation 7or similar legal practices74 7#h7 ,in recent years1 the ,consumer ,financial ,protection ,bureau has also aggressively sought to regulate attorneys' collection activities1 including their litigation activities1 despite the broad practice of law exclusion in section #ajbg7;e7 of the ,consumer ,financial ,protection ,act4 ,the ,bureau's aggressive actions could also lead to other ,federal agencies adopting rules or practices regulating attorneys' litigation activities in other types of court cases4 7#i7 ,these developments have undermined ,state and ,federal courts' primary and inherent authority to regulate and oversee attorneys engaged in the practice of law by creating multiple conflicting sets of rules and standards for attorneys1 resulting in unfair lawsuits against attorneys pursuing valid legal claims for clients in court1 increased attorney malpractice insurance rates1 difficulty in obtaining legal representation1 and reduced access to justice4 7#aj7 ,on ,january #bf1 #bjaa1 the ,conference of ,chief ,justices adopted ,resolution #a 7,in ,support of ,preserving ,traditional ,state ,court ,regulation of ,lawyers and ,opposing ,expanded ,federal ,agency ,regulation of ,lawyers and the ,practice of ,law71 affirming that primary regulation and oversight of attorneys and the legal profession should continue to be vested in the ,state courts1 not ,federal agencies or ,congress1 and that the courts are in the best position to fulfill that important function4 ,the ,resolution also expressed support for ,congress and ,federal agencies' decisions to include broad practice of law exclusions in certain ,federal statutes and agency rules1 and opposition to ,federal legislation or rules intended to establish or expand the ,federal regulatory jurisdiction of attorneys engaged in the practice of law4 7#aa7 ,while the activities constituting the practice of law are determined by the ,state in which an attorney is licensed or admitted to practice1 litigation activities in connection with a legal action in ,state or ,federal court are considered to be part of the practice of law in every ,state4 7#ab7 ,to protect and restore ,state and ,federal courts' primary and inherent authority to regulate and oversee attorneys and the legal profession1 ,federal legislation is needed to clarify that-- 7,a7 attorneys engaged in litigation should be regulated and disciplined exclusively by ,state supreme courts1 their attorney disciplinary agencies1 and other ,state and ,federal courts of competent jurisdiction2 7,b7 ,federal agencies shall have no regulatory authority over litigation activities of attorneys2 and 7,c7 no party in a legal action shall have a ,federal private right of action against the opposing attorney for the attorney's litigation activities4 7#ac7 ,on ,february #e1 #bjbj1 the ,conference of ,chief ,justices also adopted a second ,resolution #a1 entitled ,in ,support of ,preserving the ,courts' ,authority to ,regulate and ,oversee ,lawyers ,engaged in ,litigation and ,opposing ,federal ,agency ,regulation of ,lawyers' ,litigation ,activities1 which expressed support for ,federal legislation that would implement the three proposed reforms described in paragraph 7#ab74 7#ad7 ,on ,april #ab1 #bjbc1 the ,consumer ,financial ,protection ,bureau published its ,statement of ,policy ,regarding ,prohibition on ,abusive ,acts or ,practices that explains its interpretation of those prohibitions contained in the ,consumer ,financial ,protection ,act of #bjaj and the actions that providers of consumer financial products or services1 including attorneys engaged in debt collection1 must take or avoid in order to comply with the ,act4 ,however1 by requiring attorneys representing creditors in debt collection litigation to act in the interests of consumers instead of the interests of their own clients1 and by requiring attorneys to take other steps inconsistent with their ethical duties1 the ,consumer ,financial ,protection ,bureau ,statement of ,policy directly conflicts with the courts' well-established attorney rules of professional conduct1 attorney disciplinary rules1 and litigation procedural rules1 thus further undermining the courts' primary and inherent authority to regulate and oversee attorneys engaged in the practice of law4 7b7 ,sense of ,congress ,it is the sense of ,congress that attorneys engaged in litigation activities should be regulated and disciplined exclusively by the courts and other authorities of the ,state in which the attorney is licensed or admitted to practice1 attorney disciplinary agencies overseen by those courts1 and other ,state and ,federal courts of competent jurisdiction pursuant to the applicable statutes1 rules of civil procedure1 and rules of professional conduct and disciplinary procedure duly adopted in those jurisdictions4 #c4 ,court authority over attorneys engaged in litigation activities 7a7 ,in general ,chapter #ii of title #bh1 ,united ,states ,code1 is amended by inserting after section #afca the following3 #afcb4 ,preservation of ,state and ,federal courts' primary and inherent authority to regulate and oversee attorneys engaged in litigation activities 7a7 ,definitions ,in this section3 7#a7 ,federal agency ,the term ,federal agency means an agency as defined in section #eea7a7 of title #e4 7#b7 ,litigation activities ,the term litigation activities means any actions by a licensed attorney or a law firm in connection with a legal action in a court of law on behalf of a client1 including-- 7,a7 serving1 filing1 or conveying formal legal pleadings1 discovery requests1 or other documents pursuant to the applicable statute or rules of civil procedure2 7,b7 communicating in1 or at the direction of1 a court of law 7including in depositions or settlement conferences7 or in the enforcement of a judgment2 and 7,c7 any other activities engaged in as part of the practice of law1 under the laws of a ,state in which the attorney is licensed or admitted to practice1 that relate to the legal action4 7#c7 ,state ,the term ,state means the #ej ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 the ,commonwealth of the ,northern ,mariana ,islands1 ,american ,samoa1 ,guam1 and the ,united ,states ,virgin ,islands4 7b7 ,limitation on ,federal agency authority ,notwithstanding any other provision of law1 a ,federal agency does not have any supervisory1 enforcement1 or regulatory authority over litigation activities of attorneys or law firms4 7c7 ,no private right of action ,notwithstanding any other provision of law1 a person may not bring a civil action in a court of the ,united ,states seeking relief for harm arising out of alleged misconduct related to the litigation activities of an opposing attorney or law firm4 4 7b7 ,clerical amendment ,the table of sections for chapter #ii of title #bh1 ,united ,states ,code1 is amended by inserting after the item related to section #afca the following3 #afcb4 ,preservation of ,state and ,federal courts' primary and inherent authority to regulate and oversee attorneys engaged in litigation activities4 4 #d4 ,conforming amendments 7a7 ,fair ,debt ,collection ,practices ,act ,section #hjc7f7 of the ,fair ,debt ,collection ,practices ,act 7#ae ,u4,s4,c4 #afib;a7#f77 is amended-- 7#a7 by redesignating subparagraph 7,f7 as subparagraph 7,g72 and 7#b7 by inserting after subparagraph 7,e7 the following3 7,f7 any licensed attorney or any law firm1 to the extent that such attorney or firm is engaged in litigation activities 7as such term is defined in section #afcb of title #bh1 ,united ,states ,code7 to collect a debt on behalf of a client2 and 4 7b7 ,consumer ,financial ,protection ,act of #bjaj ,section #ajbg7;e7 of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eeag7;e77 is amended-- 7#a7 by redesignating paragraph 7#c7 as paragraph 7#d72 and 7#b7 by inserting after paragraph 7#b7 the following3 7#c7 ,rule of construction limitation with respect to debt collection ,paragraph 7#b7 shall not apply to a licensed attorney engaging in litigation activities to collect a debt on behalf of a client if the attorney is excluded from the term debt collector under section #hjc of the ,fair ,debt ,collection ,practices ,act by reason of section #hjc7f77;,f7 of such ,act4 4