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IA SF330
A bill for an act relating to awarding costs and reasonable attorney fees to a prevailing party in a civil action and including effective date and applicability provisions.
summary
Introduced
02/17/2025
02/17/2025
In Committee
02/17/2025
02/17/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill relates to the award of costs and reasonable attorney fees to a prevailing party in civil actions. Under current law, subject to certain exceptions, each party to a civil lawsuit is responsible for its own attorney fees. The bill provides that a court shall award costs and reasonable attorney fees to a prevailing party. The bill defines prevailing party as the party with a net monetary recovery, a defendant in whose favor a dismissal is entered, a defendant where neither plaintiff nor defendant obtains any relief, or a defendant as against a plaintiff who does not recover any relief against the defendant. If a party recovers other than monetary relief and in situations other than as specified, the court shall determine if a party is a prevailing party. The bill does not apply to actions by or against the state, other governmental entities, or public officials acting in their official capacity or under color of law. The bill requires the supreme court to submit legislative proposals, in due course, to the senate and house of representatives standing committees on judiciary to amend the Iowa Code to delete redundancies, resolve inconsistencies and conflicts, and remove any ambiguities caused by the bill. The bill applies to causes of action filed on or after July 1, 2025.
AI Summary
This bill introduces a significant change to civil litigation in Iowa by mandating that courts award costs and reasonable attorney fees to a "prevailing party" in civil actions. A prevailing party is defined broadly, including parties with net monetary recovery, defendants who have a dismissal entered in their favor, defendants where neither party obtains relief, or defendants against whom a plaintiff recovers no relief. If a party receives non-monetary relief, the court will determine prevailing party status. Importantly, this rule does not apply to actions involving state entities, governmental bodies, or public officials acting in their official capacity. The bill requires the Iowa Supreme Court to submit legislative proposals to the judiciary committees to address any potential redundancies, inconsistencies, or ambiguities created by the new law. The bill will take effect for causes of action filed on or after July 1, 2025, which means existing lawsuits will not be immediately impacted by this change. This legislation represents a departure from the traditional "American Rule" where each party typically bears its own legal costs, potentially making civil litigation more predictable and potentially deterring frivolous lawsuits.
Committee Categories
Justice
Sponsors (1)
Last Action
Subcommittee recommends amendment and passage. (on 03/03/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF330 |
BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF330.html |
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