If You Can't Beat 'em - Sue 'em!!

May 31, 2007

I just ran across an article that grossly embarrasses me to be associated with the legal profession. In a recent  NetworkWorld article I found the following paragraph:

Lawsuits are a fact of life for organizations today. Recent surveys show that the average U.S. company faces 305 suits at any one time; that number jumps to 556 for companies with $1 billion or more in revenue.

As a licensed attorney I realize that legitimate disputes do exist between parties. I take no issue with legitimate disputes. I do find it hard to believe that the average U.S. Company has over 305 active lawsuits at any one time!!

As a consumer of goods and services (individual or business), you should be angered by false and litigious lawsuits because the cost is ultimately born by you - the end consumer.

The truly alarming trend in business litigation is companies suing each other for “strategic purposes.” These cases are filed and announced in press releases as the plaintiff shouts from the courthouse steps. These types of cases have very little to do with the law, include very fuzzy causes of action and seem to languish endlessly. The goal is to slow down a competitor, burn money, waste productive resources and disparage companies.

Has corporate America forgotten how to compete? Does corporate America really feel like it must lie, cheat and manipulate the legal system to achieve their business goals? Didn’t we learn from Michael Milken and his Bond trading, Enron and their financial house of cards, Tyco and the incredulous expenditures; that cheating the system never results in a long term victory? Just because other companies are doing it doesn’t make it right. Looking down the road, some company will be “the example” when the day comes to reform the system.   

Personally, I think the penalty for a plaintiff abusing the legal process by filing a “strategic suit” should be the death penalty and the lawyers should be disbarred. That should be a sufficient deterrent for potential future players. Let’s not create SarBox for the legal profession because we abused the intended use.  Business Ethics should apply all the time, not just when required by law.

-@lavosby