What do lawsuits really do for us?

Question

Would it not be better if those that were wronged in certain cases be compensated without lawsuits!

Answer 1

This would be ideal.  However, the reason there are lawsuits in the first place is usually because the two parties cannot agree upon compensation and/or if there is actually an issue or not.  Thus, lawsuits abound.

Frivolous lawsuits drive up the cost of goods and services for all of us.

Answer 2

There are always two sides to any story. Lawsuits help fine tune existing laws and help create others.