The measures related to lawsuits are misleading and terrible, because of the way class-action lawsuits have incentivized lawyers to pursue dubious cases against large companies.
The measures related to lawsuits are misleading and terrible, because of the way class-action lawsuits have incentivized lawyers to pursue dubious cases against large companies.
I'm not in love with the system, but it does seem like a last resort for imposing discipline on corporations. The dilemma is whether the tort system is preferable to an approach involving more regulation and enforcement.
I’m not saying that the lawsuits are necessarily wrong or bad (though there do seem to be many of dubious merit), just that they don’t accurately reflect the mix of safety and other problems between large and small producers.
The tort system is too expensive and favors parties with deep pockets. Regulations and laws are more efficient. Imagine there were no laws about theft so everybody who gets something stolen from them would have to go to court.
Ahem this is about the companies suing the government to stop what the author thinks are regulations that would "save lives".
Don't they still need to win to get paid?
They're purchasing lottery tickets that are mostly paid for by tax payers who fund the court systems.
There should be publicly available data about how expensive class action lawsuits are to the court.
I would personally categorize it as as subsidized not paid for since the lawyers get nothing if they fail which is a meaningful cost.
None of this is to say I support the current system. Class action lawsuits are now designed to get settlements that save the company targeted millions or more compared to the actual damage agreed to.
And giving the lawyers millions when each litigant is lucky to get $20 is not reasonable.
The only direct costs to the taxpayers in these kinds of lawsuits are the judge's time (also the bailiff's, stenographer's, and a couple more), a slight extra load on the computer system to handle the filings, and miscellaneous wear and tear on the courtroom.
Tax payers strictly pay for the judges' and other court personnel's salaries. The vast, vast, vast majority of the cost of any civil suit is paid for by the parties to the suit.
- “Purchasing”: The attorneys that are taking these cases for $0 in the hopes that they’ll get n% of $SETTLEMENT
- “paid for by tax payers who fund the court systems”. The alternative would mean taking away the right of private citizens to sue.
I mean, I think you understand what I'm saying. They're externalizing the costs and internalizing the benefits. The same thing we complain about with numerous other industries.
The alternative would not be to take away the right of private citizens to sue. There is, surprisingly enough, quite a chasm between identifying that some parties are taking advantage of a system and completely shutting that system down.
It sounds like you’re proposing that individuals should have to pay court costs, in full so that the “taxpayer” doesn’t have to pay the bill
As a wise man once said:
> "There is, surprisingly enough, quite a chasm between identifying that some parties are taking advantage of a system and completely shutting that system down."
How do they externalize the cost? Who is paying them? The plaintiff class-action firm pays their own costs and hopes get reimbursed when the case is resolved.
Courts aren't free. Juries involve real humans.
aren't the court systems pretty self-funding?
Winning one and losing five is in their favor.
No. The case can be settled out of court. This doesn't necessarily mean lawsuits are misleading or terrible as measures.
This report is about something completely different
> incentivized lawyers to pursue dubious cases
I don't see it:
Class-action suits require the law firm owners (partners) to pay teams of attorneys, as well as experts, and others for years. I saw one firm rent an office and hire dozens of attorneys just to review the tens of millions of pages of documents, looking for evidence. The firm earns nothing unless and until a positive resolution. Some firms require financing to cover the cost.
Who is going to put all that on the line - not to mention their career and reputation - for a dubious case?
When the resolution comes - usually a settlement - they might not profit or not much for their years of investment and effort. If they pursue a 'dubious' case, they could lose everything - courts can even sanction them.
Targets of class action suits don't like them, of course, and try to denigrate the attorneys. What else will deter and get justice for some of the brazen fraud? The SEC? FTC? They don't have the resources or, depending on the administration, the mandate to enforce things across the entire country. Will you sue a corporation for even $10K? Try it.