A couple of points here...
Our UCLA friend still wants us all to shoulder the cost of litigation through "insurance" (translate "higher prices"), so at heart he's still a .... (fill in the blank)...
While the "loser pays" option looks good on the surface, that kind of policy breeds abuse in the real world. The real heart of our legal system's problems rests in the jury - our current system of easy outs, voir dire and limited, inaccurate instruction from judges with agendas virtually insures a jury of anything but your peers, and a verdict crafted by the ignorant and easily led.
If you haven't read it, I highly recommend the essays on our court system by Vin Suprynowicz in "Send in the Waco Killers."
VS is a rabid Libertarian and one must tolerate reading his opinions (unless, of course you agree) to get to the facts, but the facts are alarming. His idea of having a "fully informed jury" is the real solution to our litigation woes, for within it lies the ability to actually dispense justice - and mercy. A fully informed jury is the worst nightmare of a trial lawyer filing a frivolous lawsuit.
Rick