Many frivolous lawsuits are brought to punish businesses. They have little legal merits and very little chance of being won but are good for tying up a business in legal matters – with the accompanying costs for defending the company – and can make it difficult for small businesses to continue operating.
Defending yourself from frivolous lawsuits can be time consuming and expensive, so the best way to protect your business is by avoiding the situation that prompts a lawsuit in the first place. Obviously, there will always be people who think they can game the system but there are steps that a business can take that will minimize the impact of a frivolous lawsuit whether it goes to court or is settled.