Lawyers and frivilous lawsuits are killing real estate and in many way, the entire economy of the US. As an expert witness, I see abuse every time I look at a suit. In a real estate case, it is not uncommon to have 6 or more attorneys on the same case, no matter how small. On a "bad house" case, the Seller, Buyer, Seller's agent and Buyer's agent all have attorneys. Then, you bring in the inspectors; home, pest; roof; etc, etc. Sometimes, the title company and lender are named. It becomes a circus. The worst part is that even if someone wanted to settle, they can't because it is no longer about the roof leak or whatever the original case was about. It is not about how does the Buyer recover the $50,000 or more they have spent in legal fees. Most agents aren't aware of this because real estate companies do not publicize their legal cases. I never heard this at a sales meeting. let's thank Sally for her new listing. And, let me recognize Bill who was served with a lawsuit this week.
Even though they were not real estate cases, two come to mind.
- First, it was the McDonald's case. A lady buys a cup of coffee, gets in her car, puts the hot coffee cup between her legs and drives away. Of course, it spills and burns her. She not only sue but wins hundreds of thousands of dollars
- The other case is the little Korean people in Washington DC, who owned a laundry. they lose a pair of pants for a customer, who happens to be an attorney and judge. He sues them for $54 Million. He loses the case but then has the audacity to file an appeal. The system is so broken that this case wasn't thrown out upfront. This attorney should be sued for all he has and lose his attorney license for abuse of power.
Here is a website that has some other stories: