A more thorough explanation:

The loser-pays rule, also known as the English rule, is a legal requirement that states that the losing party in a lawsuit must pay the winner's legal fees and court costs. This rule is different from the American rule, which states that each party is responsible for their own legal fees and court costs.

For example, if a person sues their neighbor for property damage and loses the case, they would be required to pay their neighbor's legal fees and court costs. This can be a significant amount of money, which is why it's important to carefully consider the merits of a case before deciding to pursue legal action.

Another example could be a company suing a former employee for breach of contract. If the company loses the case, they would be responsible for paying the former employee's legal fees and court costs.

These examples illustrate how the loser-pays rule can impact the decision to pursue legal action. It can be a deterrent for frivolous lawsuits and encourage parties to carefully consider the strength of their case before going to court.