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February 15, 2013

Ted Frank's got a point, folks: Litigation costs hurt hiring.

In fact, they hurt everything.

I love litigation and trials. However, by the time I turned 4th year associate, I was amazed by how inefficient and time-consuming litigation is--for both plaintiff and defense sides--with the discovery process (which I also love) eating up about 70% of the trial budget. I kept thinking: this is insane; there's got to be a less medieval way of solving disputes.

At his Point of Law, Ted Frank of the Manhattan Institute writes about "how the trial-lawyer tax is hurting hiring", on the litigation overhead that can be associated with each employee. I am sure Ted's piece will be loved, hated and given political spins. But you need to read it.

Litigation costs are insane. They have been business-unfriendly for the entire 25 years I have been practicing. And for Mom-and-Pop plaintiffs, the process is no longer even about them. For both the plaintiff and defense-side camps, there's still plenty other ways for lawyers to get rich being lawyers.

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Posted by JD Hull at February 15, 2013 11:59 PM


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