On a daily basis, Solicitors across the country have people in their offices screaming that they are hard done by. The victims want vengeance for those who have done harm to them. Often, they say to the lawyer that, “its not about money, it’s about principle”.
Solicitors have got rich off the back of this word “principle”. We said the Solicitor got rich off the word not the victim. At Leverage, we believe there is no capital gain in principle. Litigation is a pursuit which people should only be involved with if the profit out ways the cost. Large corporations have used this approach for centuries.
Just think, for every dollar a couple spends on their Solicitors there is a depreciation of the matrimonial asset. In other words, every dollar spent on a Solicitor, leaves the couple with less to split once the matter is complete.
This can also be said for other matters; for every dollar spent on a family provision claim, challenging a Will, is a reduction of the inheritance to split between the family members. For every dollar a business spends on litigation it is represented as a loss in profit. I am yet to see litigation placed on the profit side of the P and L.
It never ceases to amaze me how much people are willing to spend on “principle”, but it should really be called vengeance. In so many cases, if they had spent the money on Solicitors in the first place for protection, the problem would not have occurred in the first place.
We are currently dealing with a person who lent someone a very large sum of money. They did not seek advice from Solicitors and therefore no diligence done on the person borrowing the money. We now are at a situation whereby we have little action against the parties who borrowed the money because they have no assets. Although they may not have leant the money in the first place, they would have only lost $1,500.00 by going to a Solicitor and having proper advice provided. Yes, they shouldn’t be in this position, and they should not have been ripped off. Nonetheless, they did leave themselves open by not protecting themselves.
Two simple lessons pay for protection not punishment; and only punish if there is profit in it.