Civil justice is already a pay-to-win system, punishing people with total and permanent financial ruin for not having a stable of high-priced lawyers isn't the way to go.
"Loser pays" is generally called the "European rule" although it applies in Commonwealth countries as well, while both sides paying their own legal fees is the "American rule." There are differences in both countries, since the American rule basically would result in a financial death penalty to anyone who lost against Microsoft, not because their claim was invalid, but because they dared to sue a titanic monster that can spend the GDP of a small country defending a suit and engage in all the shitfiling imaginable until the other side just runs out of money.
In both kinds of country, though, there are usually exceptions, like § 1983 civil rights suits, copyright suits, anti-SLAPP actions in the U.S., where the state has an actual policy of encouraging such actions.
Incidentally, another exception is discovery disputes, where it is virtually automatic for the idiot who forced a judge to handle the dispute instead of acting like an adult gets slapped with the other side's fees. This can be incredibly punitive, and it's possible to "win" your lawsuit but because you fucked around with discovery shenanigans, your ultimate win is entirely wiped out or even exceeded by sanctions.
I'm not sure how it works under TardLaw in Utah, though, since that's what this judge seems to be practicing.
I don't think it's significantly different to how a poor family mounts a case against a big corporation in the USA, but the big corporation is much less likely to try and drag things out for year after year when the bill for the other side's legal costs are keep ticking up. If they're in the wrong, they've got a financial interest in settling fast.
And unfortunately this isn't a deterrent that exists for disgruntled mental cases like Russhole. He views himself as having nothing to lose, and appears to be closer to that state than he was when he was forced to pay Skordas.
That's why most of these schizo vexatious litigants are, in fact, retards like Russ. People of normal intelligence have better things to do than constantly file frivolous lawsuits, and they also have something to lose.
Russ, as a dead loss of a completely worthless sex pervert creep, has nothing to lose.
It's the system we have here and it works fine.
Incidentally, while I prefer our rule to Europe's, I think it's a stretch to say it works "fine." I'd leave it at "works." Sort of.