I'm a licensed attorney who used to practice law. At one point in my career, I went into business and enjoyed some modicum of business success. Unfortunately, my business was 'blown up' by a nuisance lawsuit. I call it 'court-proofing' business dealings. They can hire attorneys for no money down and a portion of the punative take . . .
Defendants pay hourly legal fees for their attorneys.
Defendants' costs start even before a lawsuit is filed. Defendants first receive a letter advising them that unless they pay a predetermined amount of money, they will have to defend themselves in court . . . Additional intangible costs come in the form of time lost managing the business during litigation, aggravation, lost profits and lost business opportunities. Over time, in spite of the seeming 'safe harbors' of legislative and procedural statutes and court precedents, litigation can morph into the 'swamp thing,' an entity completely unrecognizable from what it initially seemed to be. Unfortunately, many business executives and business owners know the tangible and intangible costs of litigation and lawsuits.