2 ms·

It’s intended to incentive legitimate cases, the natural order effect here is that lawsuits would be more grounded in reality

ohgodplsno 5y ago
Unfortunately, <MegaCorp> has the ability to send dozens of lawyers at the case, billing them into the millions. You are a small company that happens to have your idea stolen. Even if you are sure that you would win, would you still do it ? If you lose, not only is your idea theirs, but your company is now millions in debts. Why could they win ? Most likely because of the dozens of lawyers they have, that are very likely extremely used to whatever tribunal you may have picked, and can find the smallest flaw in your suit.
- ldiracdelta 5y ago
  Yes, you only take action once you're sure you're right and you'll win--that's the beauty. Currently, if you're up against megacorp, you're almost literally betting the farm and you're almost guaranteed to go bankrupt because big Corp will try to make you go bankrupt before you win anything. Loser-pays, you actually have a chance to not go bankrupt, because the big Corp will be paying. The lawyers on your side will know this and if they're able to do economic + probabilistic reasoning, they realize that even though you're out of money, big corp is their real payer and thus they can keep fighting. Each lawyer is constantly evaluating the probability that the loser can pay and thus driving toward quick settlement.
VRay 5y ago
Aren’t there a ton of procedural tricks that giant companies can do to make lawsuits very expensive and difficult to win?
- ldiracdelta 5y ago
  Exactly, but if your lawyers believe your case, they'll keep fighting for you because the big corp will be footing the bill. As it currently stands, legal actions need to be taken to seek recompense from losing parties and frequently only some of the expenses may be recovered.

2 ms·

It’s intended to incentive legitimate cases, the natural order effect here is that lawsuits would be more grounded in reality

by no_wizard 5y ago

ohgodplsno 5y ago
Unfortunately, <MegaCorp> has the ability to send dozens of lawyers at the case, billing them into the millions. You are a small company that happens to have your idea stolen. Even if you are sure that you would win, would you still do it ? If you lose, not only is your idea theirs, but your company is now millions in debts. Why could they win ? Most likely because of the dozens of lawyers they have, that are very likely extremely used to whatever tribunal you may have picked, and can find the smallest flaw in your suit.
- ldiracdelta 5y ago
  Yes, you only take action once you're sure you're right and you'll win--that's the beauty. Currently, if you're up against megacorp, you're almost literally betting the farm and you're almost guaranteed to go bankrupt because big Corp will try to make you go bankrupt before you win anything. Loser-pays, you actually have a chance to not go bankrupt, because the big Corp will be paying. The lawyers on your side will know this and if they're able to do economic + probabilistic reasoning, they realize that even though you're out of money, big corp is their real payer and thus they can keep fighting. Each lawyer is constantly evaluating the probability that the loser can pay and thus driving toward quick settlement.
VRay 5y ago
Aren’t there a ton of procedural tricks that giant companies can do to make lawsuits very expensive and difficult to win?
- ldiracdelta 5y ago
  Exactly, but if your lawyers believe your case, they'll keep fighting for you because the big corp will be footing the bill. As it currently stands, legal actions need to be taken to seek recompense from losing parties and frequently only some of the expenses may be recovered.