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PAINTING A TRUE PICTURE OF LITIGATION In my attorney’s office hangs a picture depicting a farm scene entitled “Litigation.” In the middle of the picture is a drawing of a cow. At one end of the cow is a very angry man gripping the cow’s horns and trying to pull the cow toward him. His caption reads, “The Plaintiff.” At the other end is another very angry man tugging on the cow’s tail trying to move the cow in his direction. His caption reads, “The Defendant.” In the middle, sitting on a stool, is a well-dressed man with a big smile on his face, milking the cow. His caption reads, “The Attorney.” And so it goes! There are two unique aspects of the U.S. system that are alleged to encourage frivolous lawsuits and out-of-court settlements. First is the contingency fee arrangement with attorneys. This is when attorneys are compensated only if they win. In other words, a person can sue without having to pay any attorney fees up front. Defendants, of course, have no such privilege. Then there is the “one-way” fee system, which means the plaintiff collects costs and fees from the defendant if the plaintiff wins. A successful defendant receives nothing. Defending a case can cost thousands of dollars. Regardless of its merits, defendants will usually end up making a business decision and will settle the suit out of court. A movement requiring disputing parties to arbitrate their disputes is winding its way through the legal system. I hope it takes hold and is soon adopted by the entire legal profession. Arbitration generally costs less, is quicker, and it is not as likely to cause the major disturbances brought by lengthy court trials. An experienced judge hears the facts and, based on a legal interpretation of the law, makes a decision. The judge doesn’t get involved emotionally, and the decision is based on the judge’s comprehensive knowledge of the law. Because arbitration tends to reduce attorney fees, the movement is slow in coming. In the interim, you must take measures to protect yourself and your assets. PROTECT YOURSELF Your best safeguard is to have no attachable assets. This can be accomplished by creating an estate plan that transfers all your assets into a family-limited partnership. It is best to make the transfer before the threat of a lawsuit and/or actual judgment is rendered against you. Unfortunately, litigation has become a way of life in this country. Both time and money are lost because of this national pastime. There are over 16 million lawsuits filed each year in this country. More than 70 percent of the attorneys in the world live in the United States. You have a greater chance to face a lawsuit in the country than anywhere else does. Keep mind this could happen to you! To protect yourself, my CD/workbook Stop Lawsuits Cold, will give you the resources you need to Gain Freedom from Lawsuits. ABOUT THE AUTHOR: Eugene E. Vollucci, is considered to be one of the foremost authorities on real estate taxation and investing and has authored four book in these fields. He is the Director of The Center for Real Estate Studies, a real estate research association. To purchase the Stop Lawsuits Cold CD/ Workbook and to learn more about the Center for Real Estate Studies, please visit our web site at http://www.calstatecompanies.com
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