“What is wrong with the justice system in America?” is a complicated question with many different answers. Some would argue it would take less time to answer the question, “What isn’t wrong with the justice system in America?”
America’s justice system is routinely criticized for its overcriminalization and its noted lack of accountability when it comes to law enforcement officers, partly due to the protections offered by the qualified immunity doctrine. Controversial issues like plea bargaining and the bail system are also often cited as shortcomings of the justice system.
However, we would contend that America’s litigious culture is the worst part of the current justice system. It has become far too easy for people to file lawsuits against other individuals and businesses — and the justice system is paying the price for it.
Overview of the Legal Landscape in America
If you look at the number of federal criminal cases filed each year versus the number of federal civil cases, you’ll quickly see there is no comparison. According to the Administrative Office of the U.S. Courts, just 75,000 federal criminal cases are filed yearly, compared to over 350,000 federal civil cases.
Because of this, the federal court system struggles to keep up with civil cases. Over 600,000 federal civil cases are pending outcomes at any given time.
If you’re wondering, “What is wrong with the justice system in America?” these pending lawsuits help explain it. They demonstrate the lawsuit-happy nature of the U.S.
General Litigation Environment
Companies have always had to keep compliance risk in mind when doing business within the U.S. This concept suggests all companies are at risk of facing legal penalties, fines, and even lawsuits if they don’t comply with government and industry regulations and the right practices for consumers.
But in recent years, companies have been forced to face litigation for more reasons than ever before. Climate lawsuits are an excellent example, as over 1,500 climate cases have been brought against American companies. Corporations like Coca-Cola have faced litigation from consumers angry with them for contributing to climate change.
This is just one example of the new ways Americans are finding to take legal action against individuals and businesses.
Common Reasons for Lawsuits
Americans file hundreds of thousands of lawsuits each year for copious different reasons. There are, however, some reasons more common than others.
Here are a few:
- Motor vehicle accidents
- Slip-and-fall accidents
- Workplace accidents
- Employment discrimination incidents
- Product liability cases
- Intellectual property thefts
Ease of Filing a Lawsuit
When people believe they have reasons to file lawsuits, it isn’t difficult to do it. The internet and other technological advances help them take legal action with little effort.
This is another factor that has the number soaring of civil cases filed every year.
Low Barriers to Entry and Accessible Legal Services
If a person wants to file a personal injury lawsuit, they won’t encounter any issues when trying to locate personal injury lawyers. About 50,000 personal injury law firms exist throughout the U.S.
Google “personal injury lawyer near me” and you’re sure to find at least a few local options. When legal services are this readily accessible, it’s hard to blame Americans for taking full advantage of it.
Legal Fees, Costs, and Contingency Fee Arrangements
It isn’t just easy to find personal injury lawyers in the U.S. It’s also easy for the average person to afford one.
Unlike other lawyers, many personal injury attorneys charge clients contingency fees. They’re only paid for their legal services if they work out settlements or earn judgments.
Since people don’t often have to pay personal injury lawyers upfront, this makes it easier for them to take legal action against others. They don’t need to worry about legal fees and costs deterring them from filing lawsuits.
Abuse of the Legal System
Many Americans who file civil cases against individuals and businesses have valid arguments. Someone who is injured in, say, a car accident that leaves them with thousands of dollars worth of medical bills should maintain the right to file a lawsuit.
But not everyone who files lawsuits against others can make such a valid claim. Other Americans abuse the legal system by filing lawsuits that aren’t as legitimate.
Frivolous Lawsuits and Legal Misrepresentation
Americans have filed one frivolous lawsuit after another over the years. The U.S. Chamber of Commerce releases an annual list of these lawsuits, and they seem to take the excessiveness to the next level each year.
For instance, a Florida woman sued Kraft for $5 million in 2023 after alleging her Velveeta’s Mac and Cheese took longer than the instructions said it should warm up. Another time, a consumer sued a Subway restaurant franchise after their footlong sub measured only 11 inches.
Case Studies of Abuse
As the number of lawsuits filed each year in the U.S. has continued to rise, case studies have been done on the abuse of the legal system. They’ve revealed some startling statistics, especially when it comes to the astronomical amount of money Americans spend each year defending themselves in the class action lawsuits that have become increasingly popular.
One study, in particular, showed that American businesses spend between $3 and 4 billion annually fighting class action lawsuits. It further shines a spotlight on why, “Too many lawsuits” is the clear answer to the question, “What is wrong with the justice system in America?”
Tort Legal Reforms and Proposed Solutions
The history of tort reform in the U.S. is lengthy. American lawmakers have attempted to stop people from filing too many lawsuits for decades, and their efforts continue today.
Reform and Changes in Legal Procedures
Some states have introduced reforms to reduce the number of lawsuits filed each year. For example, Florida Governor Ron DeSantis signed House Bill (HB) 837, Civil Remedies into law in March 2023 to make it more difficult for Floridians to file frivolous lawsuits.
States like California have put hard caps on the compensation a person can collect in medical malpractice lawsuits.
Examples From Other Countries
America can learn a thing or two about reducing the number of lawsuits filed each year by looking at how other countries have dealt with this problem. Here is how they’ve done it:
- The UK and Germany don’t allow lawyers to charge contingency fees.
- New Zealand created a no-fault insurance system to compensate accident victims.
- Italy encourages plaintiffs and defendants to use alternative dispute resolution methods.
Preventative Measures for Individuals and Businesses
Even with effective tort legal reforms, individuals and businesses are always at a small risk of facing litigation. You can actually calculate your chances of being sued based on your specific situation. You can also take preventative measures to stop litigation.
Risk Management Strategies
These risk management strategies can help individuals and businesses alike:
- Identifying liability risks you may face
- Prioritizing risks based on their potential impact
- Figuring out ways to reduce or eliminate risks
- Reevaluating risks and rethinking mitigation efforts
Managing risk could involve doing something as simple as slowing down when you’re driving your car. It could also involve doing something as dramatic as reworking the packaging on your company’s products to prevent product liability lawsuits.
Legal Audits, Compliance Checks, and Employee Training
About 90% of small businesses will face lawsuits at some point. Your business can reduce the chances of facing legal action by performing these simple steps.:
- Conduct legal audits to ensure your company is following government-established laws
- Carry out checks to keep your company in compliance with industry rules and regulations
- Train employees to do their jobs properly
Using Trusts
Creating an offshore trust for your company is one more way to protect your business assets from litigation. Discover more about the asset protection a trust can provide to keep cash, intellectual property, and other business interests safe from civil lawsuits.
Steps To Take If You Are Sued
Were you just served paperwork indicating that you’ll serve as a defendant in an upcoming lawsuit? Walk through these steps to deal with this difficult situation.
Immediate Actions To Take
Right after finding out you’re being sued, you should:
- Read through the paperwork related to a lawsuit to see why you’re facing legal action
- Investigate the reason you’re being sued to see if there’s any validity
- Search for a lawyer to tackle your legal battle
Engaging Legal Representation
The outcome of a lawsuit could make or break your company. If you don’t hire the right lawyer, it could go out of business completely.
Ideally, your company should have an in-house legal team that can tackle incoming lawsuits and seek to have them dismissed. But you may also need to hire lawyers on a case-by-case basis while focusing on trying to find legal representatives who have experience in specific areas.
Navigating the Legal Process and Settlements
Facing a lawsuit will no doubt leave you wondering, “What is wrong with the justice system in America?” However, you can move toward a favorable outcome in your case by gathering compelling evidence to show off the strength of your case to a plaintiff.
You can also save your company time and possibly money by asking your legal representatives to negotiate settlements with plaintiffs.
Legal Education and Awareness
If you own a business, you shouldn’t be the only one worried about potential litigation. You should advise those who work for your company to look out for situations that could lead to legal trouble as well.
Public Understanding of Litigation Risks
Litigation risks come with the territory when you own a business. You could face legal action from customers, vendors, and just about anyone else your company does business with.
Litigation risks can arise over:
- Contract disputes
- Defective products
- Employee relations
- Intellectual property ownership issues
- Customer complaints
- And more
Make sure these risks are on your radar and educate those who work for your company about them, too.
Importance of Legal Guidance and Education
Since litigation in the U.S. is out of control, people can sue you or your company for just about any reason they want. You can push back against this by seeking legal guidance any time a potential legal issue pops up.
By educating yourself and, in some cases, those who work for your business about litigation risks, you can make them less problematic.
Contact Us To Hear How You Can Protect Yourself or Your Company From Litigation
There are so many answers to the question, “What is wrong with the justice system in America?” But the thing that stands out to us is that it has become entirely too easy for people to sue individuals and businesses.
Protect yourself by taking advantage of an offshore trust. You can stop anyone who sues you from gaining access to your prized assets when you put a trust in place.
Contact us at Blake Harris Law to find out more about how an offshore trust can benefit you.
