Store Owner Installs $350K of Surveillance to Stop Frivolous Lawsuits

Supermarket owner Rafael Cuellar from Passaic, NJ, reports that he had to spend $350,000 to install 69 surveillance cameras, recording devices, and video storage banks in order to stop fake “slip and fall” insurance claims against his store. It’s a cost that just adds to the cost of living for everyone and is a perfect example of the abuse of the legal system that we see every day with this avalanche of frivolous lawsuits.

While the cameras also help Mr. Cuellar track and prevent shoplifting–another expensive problem in retail–the main purpose of the cameras, he says, is to stop abusive, frivolous lawsuits lodged by unscrupulous crooks pretending to be customers.

“Yesterday alone we had a consumer who came back in [the store] and claimed she fell,” Mr. Cuellar recounts in the video, Supermarket Swindle (seen below). “Once the loss-prevention director said, ‘Let’s pull it up on the camera,’ she goes, ‘No, I just twisted my ankle.’ And the story changed all of the sudden.”

Cuellar spent half a million dollars to prevent being inundated with these frivolous lawsuits. Imagine what he could have done with that money if he didn’t need to waste it in such a manner. He’d have been able to expand his business, advertise more, hire more people, or even do more for the community.

“Being an entrepreneur, you always want to continue to grow,” Cuellar said. “But I do think twice about it, because of the things I can’t control.”

This isn’t just a problem in Passaic, New Jersey, either. This is a problem seen throughout the country. Imagine the billions wasted a year to attempt to prevent frivolous lawsuits and just imagine what better uses to which that money can be put.

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  • JWH

    This kind of system can also save money on resolving legitimate lawsuits.

  • Paul Hooson

    I have my own new problems with a phony accident insurance claim that some guy has started. We bought a VW Passat from a car auction for my brother’s girlfriend, but the car only ran good for about 10 minutes before the catalytic converter plugged up. So we decided to sell the car for what we had into it as a “mechanic’s specia”l and get her another car. Some blowhard claimed to be a VW expert, but he didn’t even know how to drive the stick very well and couldn’t even put the car in reverse. He drove the car around the block and parks the car in neutral gear with the parking brake either not engaged or only partially engaged. Then the car gently rolls downhill about 3-4 feet into the back of his car and he puts in a phony accident claim, claiming that all four people were injured in his car, although neither car had any damage. The guy even claims that he drove a different car to the house than the one he actually did, because the car he drove probably wasn’t legally licensed or insured. The guy has a history of running to personal injury lawyers and filing injury claims. As stupid as this case is, neither insurance company seems quick to dismiss the guy as a fraud artist. The police even want to possibly arrest the guy for “hit and run” because he fled the scene of the incident without exchanging his license or insurance information, yet the insurance companies aren’t in a hurry to dismiss this phony claim of his.

    This crap has taken hours of my time the last two weeks.

    I don’t know how the insurance industry works. But, even the most absurd insurance claim seems to get more attention than it should. Slip and fall ripoff artists and other crooks just get too much respect. More power to anything that limits insurance fraud and saves us all money on phony claims.

  • Kharma.

  • Kharma.