tags: #publish links: [[Business Strategy and Competition]], [[Law]], [[Politics]], [[PEST or PESTLE Analysis]] created: 2021-07-25 Sun --- # The legal system isn't a level playing field In most of the world, because taking a case through the courts is extremely expensive, the legal system drastically favours those with more money, especially in civil and corporate cases. ## What's the result? The protection of the law, particularly civil and corporate law, is not actually fully available to those who can't afford it. If you don't have the cash, you simply can't bring a case at all. If you have *some* cash, you still run the risk that losing the case may bankrupt you. This simple fact means the law drastically favours richer companies or people, even if we intend it to be egalitarian and equally applicable to all. If you can't afford to use the legal system, or if you're dependent on pro-bono or finding other people to support your case, then you're partially or completely excluded from its benefits. The is relevant to [[Business Strategy and Competition]] (turning the law into a weapon for the largest enterprises), but also relevant to a range of other rights. See also [[Patents and Competition]], [[Lobbying]] and [[Regulatory Capture]] which show similar dynamics. [[Regulatory Arbitrage]] exploits these asymmetries in a different way: by doing business in a location with different (less) regulation, while tighter regulations smash your competitors. ## Why is it expensive? Because lawyering is skilled, difficult, demanding and not always rewarding work, so there's an economic and status pressure for the best lawyers to become highly-paid private sector ones and therefore expensive to hire. Because where there are public legal services, governments face pressure to minimise costs of them, which will on average reduce their quality and availability, due to that same pressure for the best lawyers to work for the highest bidder most of the time. Because a failed civil case typically risks paying the opponent's legal costs if the case fails. ## Political distortion of the legal system In some countries there's *also* a political element, e.g. the courts aren't independent and tend to follow political pressure (which is in turn subject to [[Lobbying]]), or rarely work in favour of the typical citizen. ![[Embed - disclaimer - my opinions, not legal advice]]