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I also prefer the loser pays system. The judge picks which cases are sensible and which aren't system is rife with problems. Not the least of which is Judges are humans, not computers, and they have a tendency to have their own understandings and prejudices. One judge's frivolous suit is another judge's crusade for justice.
But, alas, we don't do it that way. We are too concerned with the idea that doing so would write almost everyone out of the justice system, and that people with legitimate grievances would never go into court against bigger players because of fear of being out lawyered and then left with a humongous bill.
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