Looser pays applies only to civil cases and it only applies to the plaintiff filing the suit, since the plaintiff already collects damages from the defendant if the defendant looses the case.
If the defendant wants to file a counter suite against the plaintiff claiming there is no merit to the case go for it, but they are required to prove there is no merit to the case, just don't hand the defendant money because they win the case.
There are a lot of lawsuits filed where the defendant wins the case but the case had merit. One example would be where an individual files a suit against a multimillion dollar company and simply cannot match the amount of money spent on legal fees of the multimillion dollar company.
A corrupt judge can drag a case out for years swamping the person filing the suit in legal fees.
You have automatic looser pay you are opening the door to even more corruption in the courts.