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The Best System to Prevent Frivolous Lawsuits

June 19, 2008

Contingency Fees Are the Best Way to Prevent “Frivolous Lawsuits”

[M]ost economic studies show that trial lawyers, because of their fee structures, actually reduce the number of frivolous lawsuits. This makes sense if you think about it since most trial lawyers work on a contingency-fee basis. Lawyers working on contingency only get a fee if their client is awarded money. Therefore, they are less likely to take cases in which there will be no recovery, like a case where a jury would find for the defendant. Economists argue that the contingency fees act as screeners, and most lawyers will drop a case they believe is without merit before even bringing a lawsuit.

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