The story may sound far-fetched, but the implications are very real. A former Administrative Law Judge sued his dry-cleaner for a whopping $67 Million, then reduced to $54 Million, for misplacing his pants during routine service. Such litigation really stretches the concept of a Personal Injury beyond its classic scope. Nevertheless, lawsuits
like this should rightfully cause concern among small businesses, who constantly expose themselves to litigation risks. In particular, there are two issues to consider here. First, there is the possibility that a given plaintiff may actually win the case. Albeit unlikely, such as claim would most likely bankrupt the typical small business. Secondly, there are the inevitable costs involved in a small business having to defend itself in such a case. Costs include financial, emotional, and damage to business reputation. For example, exhausted from the ordeal, the Chungs
closed their dry cleaning branch altogether. As such, businesses should carefully assess their own practices, and minimize their exposure to lawsuits. In cases of law, even when small businesses "win," they can lose.
