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Legal System Abuse: What’s driving it and what businesses can do

Legal system abuse, a term describing tactics designed to increase the size and frequency of liability settlements and court verdicts, has an impact far beyond the courthouse.

This trend is forcing U.S. businesses and communities to pay a steep price, in the form of legal expenses, higher insurance costs, reputational damage, and more.

What is Legal System Abuse?

Legal system abuse is the deliberate misuse of courts, legal procedures, or regulatory mechanisms to exhaust resources, intimidate parties or secure an advantage unrelated to facts or law. Rather than resolving disputes, a legal system abuser may exploit procedural loopholes, use excessive motion practice, or use strategic delays to escalate costs and wear down the opposition. This can include patterns of duplicative or irrelevant discovery demands, or hyper-aggressive enforcement tactics aimed at reputational harm and financial strain.

Understanding clear legal abuse examples can help organizations recognize tactics early and react properly with a coordinated response. 

Common forms of legal system abuse can include irritating litigation (serial or meritless lawsuits), Strategic Lawsuits Against Public Participation (SLAPP) actions designed to chill speech, baseless injunctions or restraining orders. Abusive tactics can also arise in manipulated compliance investigations, bad-faith contract enforcement, or coercive settlement strategies relying on escalating legal expenses instead of strong legal positions. These abusive strategies can unfold across civil, regulatory, and commercial landscapes. 

Quick hits about Legal System Abuse

Widening impact: Legal system abuse creates a ripple effect that is spreading well beyond the courthouse. As businesses struggle with the financial burden of litigation, legal system abuse also is impacting employees, families, and communities.

Trend drivers: Multiple factors are driving legal system abuse, and three are considered leading contributors. These are attorney advertising, changing attitudes toward lawsuits, and third-party litigation funding.

Mitigation strategies: Despite the nationwide trend in legal system abuse, businesses can take action to reduce their exposure to litigation. Improving risk governance, working with professional risk advisors, and engaging with stakeholders can help organizations defend against aggressive legal tactics.
 

Making the case for litigation risk management

Defend your organization from legal system abuse by taking action to mitigate liability risks.

Build your legal shield.