Sadly it is the same in most western countries, however if you sue me because I wore a pink hat (frivolous lawsuit) I have the right to counter-sue you (which would be a non-frivolous lawsuit). Yours would be thrown-out and cost you money and probably a lot to get a lawyer to take it on, mine however would likely be taken on on a no-win-no-fee basis by basically any lawyer because it would be so easy to win. So your suit would cost you money, and mine would likely cost me nothing or make me money.

So yes the loophole is there, but the loophole itself is kind of self destructive for anyone dumb enough to try it.