Asset Protection & the Lawsuit Crisis

“Suing for damages has become both a huge industry and a tremendous drag on American industry’s ability to compete.” – Forbes Magazine

“Plastic surgeons are being named in numerous lawsuits. One Texas malpractice insurer states that current premiums are running between US $20,000 – 80,000 and will likely jump 20% again.” – The Economist

“Every year in America individuals and businesses spend more than $80 billion on direct litigation costs and higher insurance premiums. When indirect costs are included, the costs may add up to a figure in excess of $300 billion.”
– President’s Council on Competitiveness

One of the fastest growing businesses in America are armies of contingent fee lawyers (80% of total world’s lawyers are in the United States; 130,000 new students are currently attending law school).

…Do you remember the woman who was awarded $2.3 million in a suit against McDonald’s because “she” spilled hot coffee all over herself.
(The Award was later reduced but not eliminated).

You will get Sued!!!

Reaching epidemic proportions, statistics now show that US citizens have a one in four chance of being sued during their lifetime. Business owners and professionals are the most likely to be sued; also included in that union are physicians, plastic surgeons, stockbrokers, law enforcement officials and real estate developers. Governing rules of civil procedures have been liberalized, consequentially making the process of taking legal action much easier than ever before. Results can be devastating, and products such as liability insurance are rarely enough to cover all eventualities.

Recent Survey

U.S. Chamber-Commissioned Survey Shows Small Business Owners Motivated to Vote
WASHINGTON, D.C.- Small business owners are much more pessimistic than average voters about the national economy and hold negative views of Washington’s attempts at solving problems, according to a national bipartisan poll conducted by Bill McInturff and Doug Schoen for the U.S. Chamber Institute for Legal Reform (ILR). …The survey also shows that lawsuits are a major concern for small business owners and an obstacle to economic growth. Seventy eight percent say that if Congress passes laws allowing trial lawyers to bring more lawsuits, it would have a negative impact on the economic climate affecting their businesses. In addition, 92 percent say the poor economy has made it more difficult for their company to absorb the additional costs, time and other issues related to a lawsuit. For the entire article:
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Pursuing You Offshore

In the rare event a plaintiff should wish to follow you offshore, they may find it a very expensive and distasteful experience. If your assets have been legally transferred overseas, and ownership of the offshore entity has been structured to capitalize upon asset protection benefits of the jurisdiction of choice, you have tipped the scales in your favor.

For example, in one specific jurisdiction, the plaintiff would need to first know the assets are being held within the country and then retain a local attorney. It would be at considerable expense inasmuch as there is an absence of barristers willing to work on a contingency fee. Also, since frivolous lawsuits are not looked upon favorably, it would be incumbent upon that attorney to convince a local court to hear the case. Even if that can be accomplished, the case will be dismissed should it be proven that assets were transferred prior to the suit being filed. The wicked battle awaiting a plaintiff offshore often results in either a settlement on the defendant’s terms or the suit being dropped all together.

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