How To Put A Small American Manufacturing Company Out Of Business
Let us say you are a small manufacturing firm, one that makes equipment in the lift/hoist area, for sake of this example. You find yourself slapped with a lawsuit (along with many other outfits) alleging that your negligent, wanton, reckless and consipring little firm made up of three families has done gone and caused cancer in someone. "Good Lord" you say, "what was it we were supposed to have done?"
You sold a lift in the 1970s that had a set of brake-type shoes inside the lift that are supposed to have contained asbestos. And you, you dirty merchant of death, knew, KNEW better!!! So what if you were solely in the business of making your lifts and hoists - just try to tell anyone that you bought braking material from someone else. A pair of brake shoes inside a lift someone may have been around decades ago is what you need to pay for, and pay big.
Recession? Lack of viable insurance? Bah, the plaintiff lawyer has only collected something in the neighborhood of $2,000,000 so far - your pitiful cries for relief matter not, next to his 40% contingency fee. Can't meet the $500,000 demand to settle (oh, you only had sales under $5,000,000 last year?) OK, take your case to trial - you can handle the tens of thousands of dollars in legal expenses, right? I'm sure the judge and jury in the judicial hell-hole you have landed will be more than fair...
Attempted Death of an Enterprise, brought to you by the American Plaintiff Bar - a play in 3 acts witnessed by yours truly.