Chapter 49 – Oregon Ranked One of The Worst Places to Make a Living

It ain’t Folsom California, is it Linda?

In my ongoing quest to highlight the strains to small business because of the extraordinary negative opinion held by the US District Court of Oregon, Portland Division, and the County Courts in the Portland Metro area, I thought I’d share a sound bite or two.

I just wonder why the following truths simply don’t sink in:

The Five Truths

In many cases the economic model for the proliferation of legal services strips wealth and places it in the hands of those who create fewer jobs. No statement like the above can really be made in a vacuum. But, given the enormous volume of fraudulent lawsuits today, one must conclude that we simply have too many lawyers and so they attack where they think they can prevail at that includes winning by having the leverage to cost the small business its survival…just by attrition, the cost of defending the lawsuit. Sue for a million, settle for $75,000 and the business loses $250,000 and will never really recover.

How many businesses really survive and for how long? See below.

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The survival matrix above is a good indication of the difficulty facing small business. By the 10th year only 35% or so are still around. And if they face one or two of these ridiculous lawsuits, fewer still will survive. Companies with 50 or fewer employees represent 1/3 of the business employment. Companies with 500 or fewer employees represent 99.7%. Attacking the 50 employee group means they probably go away as a result of the lawsuit. To a lesser degree those having more than 300 employees go away. Many are very detailed and fair in how they go about their business. We all pay the price for those who are not.

Does it simply mean we have too many lawyers and the respective State Bars wont control them? Probably.

The difficulty of filing a lawsuit against the State Bar for negligence or Racketeering is that your case will be in front of a judge who is a member of the Bar. The franchise of law is an enterprise of lawyers some of whom are dishonest and some of whom are honest. The best of you need to influence the Bar and set the culture and that means engaging the Judges to stop the frivolous lawsuits as soon as they can, to minimize the damage to the victims of these rapacious lawsuits. If you can do that then business will prosper. If you do not, business will suffer and move to friendlier state or city.

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