That's the East Asian response. A law like that would probably get dragged through the courts in America with the rest of the media circus before being struck down as government overreach. As the original poster said, legal liability between private individuals with lots of court fees is very American.
Definitely see it being dragged through the courts. But it'd be the most tolerable enforcement mechanism to the wealthy elite who wouldn't mind just eating a fine.
The East Asian solution takes it one step further with mass surveillance.
I don't think this works from a European perspective, at least based on the country I live in where the opposite seems more true. I guess it might make sense compared to some east Asian countries as another commenter noted.