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AMENDMENT NO 1 PROPOSED TO

Cmte Sub for Senate Bill No. 2763

BY: Senator(s) Dearing

     AMEND by adding the following after line 1267:

     SECTION *.  Section 11-55-5, Mississippi Code of 1972, is amended as follows:

     11-55-5.  (1)  Except as otherwise provided in this chapter, in any civil action commenced or appealed in any court of record in this state, the court shall award, as part of its judgment and in addition to any other costs otherwise assessed, reasonable attorney's fees and costs against any party or attorney if the court, upon the motion of any party or on its own motion, finds that an attorney or party brought an action, or asserted any claim or defense, that is without substantial justification, or that the action, or any claim or defense asserted, was interposed for delay or harassment, or if it finds that an attorney or party unnecessarily expanded the proceedings by other improper conduct including, but not limited to, abuse of discovery procedures available under the Mississippi Rules of Civil Procedure.

     (2)  No attorney's fees or costs shall be assessed if a voluntary dismissal is filed as to any action, claim or defense within a reasonable time after the attorney or party filing the action, claim or defense knows or reasonably should have known that it would not prevail on the action, claim or defense.

     (3)  When a court determines reasonable attorney's fees or costs should be assessed, it shall assess the payment against the offending attorneys or parties, or both, and in its discretion may allocate the payment among them, as it determines most just, and may assess the full amount or any portion to any offending attorney or party.

     (4)  No party, except an attorney licensed to practice law in this state, who is appearing without an attorney shall be assessed attorney's fees unless the court finds that the party clearly knew or reasonably should have known that such party's action, claim or defense or any part of it was without substantial justification.

     (5)  In addition to the award of attorney's fees and costs awarded under this chapter, upon proof made thereon, the court shall award to a party prevailing on its motion for attorney's fees and costs damages for losses suffered, including, but not limited to, pain and suffering, loss of business, loss of goodwill, loss of clientele and any other compensatory damages as that term is defined in Section 11-1-65.

     FURTHER, amend the title to conform.