There'd be fewer of these nuisance lawsuits, too.
I'd support a loser-pays system only up to the amount of money the loser spent pressing his case. Huge financial resources do help you win a case. How unfair is it for someone to lose a case because the other guys had a bigger legal staff, and then be charged with paying for the legal staff?
I don't have a problem with the plaintiff being forced to pay the defendant's legal expenses if their suit is deemed "grossly unreasonable" or "non-sensical".
But I am somewhat concerned about a blanket loser-pays system. Good cases do lose sometimes. And many other cases are arguably legitimate claims that could reasonably go either way in a court of law. I have a problem with making the loser automatically pay in such instances. I don't think someone should have to put their livelihood on the line if they have a reasonable case to bring.
Perhaps a comprosmise solution would be to leave it up to the jury. Have them make two rulings. One on the merit of the case. And then secondarily (if the plaintiff loses), to rule on whether the case was "grossly unreasonable" or "non-sensical". If so, then the loser pays.