According to a recent report from the National Federation of Independent Business (NFIB), frivolous lawsuits cause headaches for a lot of companies, but small businesses are sometimes the most frequent targets and also end up being particularly hard-hit as a result.

"Frivolous lawsuits create a climate of fear for America's small businesses," said the report. "While some claims are legitimate, a large percentage are completely without merit." However, small businesses that are sued still have to defend themselves, and this defense is often more costly to both the businesses and their customers.

According to the NFIB, Rule 11 of the Federal Rules of Civil Procedure, which was passed in 1993 and designed to help prevent frivolous lawsuits, has been hamstrung by changes over the years that loosened its effectiveness. "Because of the changes, parties and their counsel are allowed to avoid sanctions simply by withdrawing their frivolous claims within 21 days," said the report. This change has removed the disincentives for attorneys to file frivolous suits.