SENATE BILL No. 1001

 

 

December 13, 2007, Introduced by Senators RICHARDVILLE, KAHN, GEORGE, PAPPAGEORGE, GILBERT, SANBORN, BIRKHOLZ, McMANUS, ALLEN, VAN WOERKOM, KUIPERS, JANSEN, HARDIMAN, CASSIS, STAMAS and BROWN and referred to the Committee on Judiciary.

 

 

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending section 2591 (MCL 600.2591), as added by 1986 PA 178.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2591. (1) Upon If, on motion of any party to a civil

 

action, if a the court finds that a civil the action or a defense

 

to a civil the action was frivolous, the court that conducts the

 

civil action shall award to the prevailing party the costs and fees

 

incurred by that party in connection with the civil action by

 

assessing the costs and fees against the nonprevailing party and

 

their the nonprevailing party's attorney.

 

     (2) The amount of costs and fees awarded under this section

 

shall include all reasonable costs actually incurred by the

 

prevailing party and any costs allowed by law or by court rule,


 

including court costs and reasonable attorney fees.

 

     (3) In addition to other costs and fees awarded under this

 

section, the court may impose an appropriate sanction on the

 

attorneys, law firms, or parties that initiated the action or

 

asserted the defense found to be frivolous. A sanction imposed

 

under this subsection shall not exceed an amount sufficient to

 

deter the repetition of the conduct or comparable conduct by others

 

similarly situated.

 

     (4) (3) As used in this section:

 

     (a) "Frivolous" means that at least 1 of the following

 

conditions is met:

 

     (i) The party's primary purpose in initiating the action or

 

asserting the defense was to harass, embarrass, or injure the

 

prevailing party.

 

     (ii) The party had no reasonable basis to believe that the

 

facts underlying that party's legal position were in fact true.

 

     (iii) The party's legal position was devoid of arguable legal

 

merit.

 

     (b) "Prevailing party" means a party who wins on the entire

 

record.