Most civil lawsuits are settled between the parties without going to trial.
This method is often used by the suing parties lawyers as a method of
frightening the defendant into paying the suing party huge sums of money to
avoid an actual trial. It's a tactic. Often the costs of defending such a
lawsuit, if you take it all the way through a trial, will exceed the
requested pre-trial amount the suing party asks for settling.

A "looser pays" law would give all parties rushing to sue anybody and
everybody pause to consider the consequences should the defendant insist on
a trial and prevail. The suing party would then have to pay the defendants
legal and other expenses incurred defending himself from the lawsuit. I'd
vote for a looser pays 3x winners expenses.

Jim