COLUMBIA, S.C. (AP) - U.S. Sen. Lindsey Graham said frivolous lawsuits are clogging the nation's court system, and he's sponsoring federal legislation to penalize people who file such suits.

"The culture of suing anybody about anything with no consequences to yourself has to change," Graham said.

The Seneca Republican has introduced so-called loser pays legislation, which establishes a set of guidelines under which the loser of a federal lawsuit could be required to pay the winner's attorney fees.

To receive compensation for attorneys' fees, the winning side must have made a settlement offer that was rejected and then file a petition with the judge requesting compensation. The judge will make the final determination.

"Loser pays does more to stop frivolous lawsuits in the federal court system than any other reform," Graham said. "Litigation designed to shake someone down for a settlement would be far less frequent if each party had something to lose."

Graham also encouraged state lawmakers to follow suit.

The South Carolina House passed tort reform in January that would bring sanctions to people and lawyers who bring frivolous lawsuits, cap non-economic damages and limit the venue of where a suit can be filed.

Gov. Mark Sanford said Graham's legislation, along with tort reform at the state level, are small steps to help make South Carolina more competitive for jobs and businesses. South Carolina lost jobs for the third straight year in 2003 marking the worst stretch for workers since the Great Depression, according to state and federal statistics.

"We have consistently got to look at things that will make us more competitive," Sanford said.

Opponents say Graham's legislation would limit access to justice.

Ordinary people might be dissuaded from filing non-frivolous lawsuits for fear of paying court costs if their case loses, said House Minority Leader James Smith, D-Columbia and an attorney.

"There are a variety of reasons why you might lose an otherwise meritorious claim in court," Smith said.

And the loser pays reform will end up "chilling folks' ability to fight injustices," said Sue Berkowitz, executive director of the South Carolina Appleseed Legal Justice Center.

House Speaker David Wilkins said he spoke with Graham on the loser pays legislation after the House passed tort reform and would consider the issue if the Senate attaches it as an amendment to the House bill.

"This would be another impediment, another way to discourage frivolous lawsuits," said Wilkins, R-Greenville.