I think there are way to many frivolous law suits, like the McDonald's coffee thing but without the legitimate ones we would be in a world of sh.....
You might want to look up the full story behind that McDonald's coffee suit.
Everyone knows that if you spill hot coffee on yourself you're going to hurt yourself. Additionally, every company that sells a bazillion cups of coffee knows that some of their customers are going to spill it. McDonald's, by established procedure, kept their coffee so much hotter than necessary that it caused far worse injuries than would have otherwise happened.
Here's the key point: McDonald's had been sued about (according to McDonald's own files) 700 times previously over this same issue and had already paid out over $500,000 to settle those claims. McDonald's knew they kept their coffee so hot that any spill would cause severe skin damage almost instantly. McDonald's had known for a long time that they needed to turn down the temperature of their coffee because people were being injured.
McDonald's didn't do that. If they had, they would have been admitting they were wrong and they felt they would be opening themselves up to more lawsuits. Their risk analysis told them that it was probably cheaper to keep paying off small lawsuits rather than take action to prevent injuries that they knew, statistically, were going to happen. They kept their coffee way above too-hot as a way of demonstrating they weren't really wrong.
Then it finally happened that someone had a really bad spill and was *severely* injured. In the court's view, McDonald's could not have reasonably been unaware that such a thing would happen. So when the big spill, the big injury, and the big lawsuit finally happened, the court decided that McDonald's had already been given far too many chances and warnings in the past and dropped the hammer on them. 700 strikes and you're out; McDonald's absolutely deserved the ruling.
McDonald's, of course, turned up the PR machine to paint the incident as frivolous. It most assuredly wasn't.
Good analyses can be found in lots of places (there was even a documentary movie about it) but for an explanation that's not too long and wordy, try:
http://www.lectlaw.com/files/cur78.htm