Question

Many people believe there are too many lawsuits in this country. Some blame greedy lawyers. The business community claims these lawsuits add to the cost of products and cut into profits. They also argue they result in higher insurance premiums.

Answer 1

The truth is that people in this world get engaged in finding out the loopholes in the protocols and laws that can offer them with certain advantages. In the process, people enter either into the black area or grey areas of illegal activities that calls for lawsuits. For lawyers, it is the profession of making money through fighting the case for the clients by way of lawsuits. Indeed some lawyers are greedier than the others but they cannot be alone blamed for it. The fact that people resort to illegal activities or malpractices, give these lawyers a scope to earn money out of the lawsuits. If people become more responsible for their actions and owe it up personally, then there could be a gradual decrease in the lawsuits filed by the lawyers on behalf of their clients in the court of law.

The other part of the argument also holds true. More the Companies spend in lawsuits, lesser the margins of profits they enjoy from the product earnings per unit. This is so because portion of the profits earned on the products, go into spending in the lawsuits. More the fees pertaining to the lawsuits shall in turn amount to higher input costs of the products because margin available decreases. The scope of sales risk increases thereby resulting in higher insurance premiums.

Hence, one important way although a pipeline dream, to curb with lawsuits is that, the entities and people need to be more genuine to their stakeholders and engage in the business activities in an honest manner. This shall gradually result in lessening of lawsuits.