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That’s a fantastic rule that I wish were true everywhere. So many frivolous lawsuits (which Elon is well-experienced in filing) would suddenly disappear.
Well, the word “automatically” is an exaggeration. For example, if it was a close call and it seems you were in the court fairly, then the losing side might not have to pay up, at least not in full. But often they do. Better settle if you think you’ll lose. It’s a lot cheaper that way.
So basically you just have to prove that you weren’t filing frivolously. Sounds like a decent bar to clear.