Lawsuit “Utopia”

No other legal system in the world functions remotely like the U.S. tort system. Unlike any other country in the world, America encourages lawsuits. The more the merrier, according to many modern-day American jurists. The intent, or so the rationalization goes, is to sue ourselves into a better world. We can do this, they say, by punishing anyone and everyone that may have had a hand, directly or indirectly, in any mishap, causing injury or some other wrong to someone else – even if the injured party contributed to the wrongdoing.

Those who encourage litigation theorize that the fear of being sued will deter civil wrongdoing and lead us into judicial nirvana. Ignored is the fact that fear of punishment hasn’t been much of a deterrent in our criminal justice system, which currently houses a worldwide record of upwards of 2.4 million men and women in its jails and prisons. That’s roughly one in every 100 adults. Add in those on parole or probation and the number of adults under correctional supervision in America jumps to 1 in 31. Not incidentally, the U.S. also holds the record for incarcerating a higher percentage of its citizens than any other country in the world – five times more than Britain, nine times more than Germany and 12 times more than Japan.

There is another theory about the ultimate objective of today’s litigation craze that appears to have a lot of credence. That theory goes like this: Where there is litigation, there is money to be made.

What’s more, litigation is an equal opportunity enterprise. You can litigate money from family members, friends, neighbors, doctors, hospitals, business owners, manufacturers, bankers, and stockbrokers, even government. Take your pick. There is no scarcity of potential defendants primed to target.

America has more lawyers, more courts, and more lawsuits by far than any other country in the world – and the numbers grow with each passing year. According to Towers Watson, the cost of civil justice in America is rapidly approaching $300 billion annually. That is 50 times more than litigation cost the economy 50 years ago, about the time when the business of lawyering first began to sniff out the huge potential business of lawsuits. Even more incredible is the fact that America’s litigation war in 2010 alone cost more than five times as much as the U.S. spent the first year of fighting the war in Iraq.

While much has been written about the world’s most litigious society, the editorial focus generally has been on high-profile corporate negligence and medical malpractice litigation — the more sensational, big-dollar lawsuits that force giant companies into bankruptcy, put tens of thousands out of work, and drive doctors out of medicine. None of this seems to have put a crimp in corporate malfeasance or the marketing of unsafe products, if the scandalous revelations that pop up with disturbing regularity are any indication.

Nor has the soaring number of medical malpractice claims tended to improve the amount, quality or cost of healthcare in America. Just the opposite seems to have happened. The amount, quality and cost of healthcare have all declined in the face of rising medical malpractice claims and costs, despite the fact that plaintiffs fail to prove negligence in three out of four malpractice trials. Meanwhile, the increasingly powerful trial attorneys get rich and richer by driving the litigation bandwagon to record highs.

While big-dollar class action lawsuits account for most of the headlines, the harsh reality is that the vast majority of civil lawsuits target Middle America – those small business owners with deep pockets and other middle income Americans, usually those with less than $1 million in vulnerable assets. It’s so easy to sue them.

Not so in the past! It used to be that the U.S. tort system was a judicial forum where legitimately injured people could seek redress. The system has since been transformed into something more closely resembling a game show, where selfish opportunists can get rich quick with little more to justify their claims of entitlement than a capricious gripe and a craving for someone else’s money.

In the face of all this, what is a business or professional person to do?

The answer: Put in place an Asset Protection Plan now, before the litigation starts and it is too late.

Contingent fee attorneys are  loathe to launch lawsuits when there is little prospect of recovery!

The best way to determine if your assets are at risk and the legal options available to protect them, is to schedule an Asset Protection Analysis. We will provide a confidential review of your financial resources, including your risk level, asset classifications and personal objectives. Taking control of your own financial, estate and asset protection planning is critical to your peace of mind. Let us help you gain that peace of mind. Please call 800.231.7112 to schedule your analysis.