Idea #1. Take the Wal-Mart strategy and NEVER settle. Fight everything tooth and nail till word gets around that we are not to be F*cked with. You sue us? We countersue for more. Pretty soon the lawsuits go away.
Idea #2. We stop helping people all together. I send a letter and tell these organizations that we will no longer be taking risks with their clients, we're very sorry, but we are a small company and can't handle the legal costs. Then we dump all our low end properties back into the arms of the slum lord type operations here in town and just say F-'em.
Idea #3. Stay the course and just insure the hell out of ourselves. Forward anyone to our attorney(s) and eat the cost but let the attorneys deal with the stress.
EDIT: For clarification. I'm not nearly as worried about losing money as I am about the stress and loss of time/productivity that comes with these suits & complaints
As a trial lawyer ... who used to file suits like this ... my advice would be Option #2.
Find a better class of clients.
The Wal-Mart approach will not work. You will drive yourself to the poor house employing those tactics. You don't have those kind of deep pockets. And (more importantly) ... who on Earth do you intend to "countersue" ...?
A bunch of broke folks living in government housing ...?
You've got to be F*cking kidding me.
You could never ... in your life ... collect a single dime.
What are you going to do ...? Repossess their used clothing from Goodwill ...?
Got news for you ...? Everything they own is exempt from execution ... including their Social Security checks.
And for about a grand ... any one of them could file for Chapter 7 bankruptcy ... and you'd be terminally F*cked.
So you would pay to take your cases to trial ... win some ... lose others ... pay your lawyers in every instance ... and their lawyers in some ...?
The ONLY people getting rich on this one is the lawyers. The only going broke is YOU.
In 99% of the consumer cases ... the legal fees are far more destructive than the actual award of damages.
If a broke person sees you as a (potential) free paycheck ... they will F*ck you over hard and fast.
They've got everything to gain ... and nothing to lose.
And if a under-employed lawyer thinks he or she can milk a settlement (or, better yet, win) ... guess what is going to happen ...?
Yep.
And unlike your lawyer ... they will often work on a contingency.
Underemployed and unemployed lawyers have little to lose too ... aside from their time ... which they have plenty of.
And most all consumer protection statutes provide for fee shifting if the consumer wins.
(whereas if you win ... you're just F*cked. The fee shifting is a one-way street).
So my vote would be for Number Two.
Start doing business ... with people ... who have something to lose.
Then ... if you want to do something to help people ... pocket the profits ... and write a check to your favorite charity.
Otherwise ... Option #3.
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