Predatory Litigation: A threat against your wealth


You only need to turn on the news to hear about the latest legal battle playing out in the courts. Tens of thousands of lawsuits are filed every day all across the country. Everyone sues everyone: strangers, employers, friends, even family members. Litigation is such an accepted part of the culture that a lawsuit is often the first thing people think of when they have a dispute.

It wasn’t always like this. Believe it or not, at one point in history, lawsuits were discouraged and only considered as a last resort. Being an attorney was considered a gentleman’s profession. Attorneys were expected to counsel wisdom and restraint, rather than encouraging no-holds-barred litigation. Clearly, that is no longer the case. Several facets of our legal system have contributed to this unfortunate situation.

Attorney advertising

Until relatively recently, attorneys were not allowed to advertise their services. But in 1977, in Bates v. State Bar of Arizona, the U.S. Supreme Court held that attorneys had a constitutional right to advertise. It was considered “commercial speech” and therefore protected under the First Amendment.

It’s difficult to imagine a world without attorney advertising now. You can’t walk down the street without seeing a billboard or a bus stop bench offering to help you with your legal needs. As a consequence of this, lawyers have become both more competitive and more aggressive at chasing that big case.

Contingency fees

A contingency fee is one where the attorney is paid a percentage of a court award (rather than an upfront fee or hourly billing). The fee typically ranges anywhere from 25% to over 50%. Contingency fees have become the standard in personal injury cases. With awards in big cases reaching into the millions (and sometimes even billions!), plaintiffs’ attorneys stand to make a huge windfall with the right case.

An attorney with this much to gain if they win the case (and nothing if they lose) has a huge incentive to aggressively pursue profitable cases against vulnerable defendants.

No “loser pays” rule

Many other countries follow the English Rule for attorneys’ fees, where the losing party pays the other side’s legal fees. Under the American Rule, absent a contract or statute to the contrary, each party pays their own legal fees.

What this does, in effect, is provide a system where a plaintiff can bring a lawsuit with no risk to himself. If his attorney takes the case on contingency, and he does not have to pay the other side’s legal fees if he loses, he can sue someone without paying anything out of his own pocket. The defendant, on the other hand, risking tens or hundreds of thousands of dollars in legal fees regardless of the outcome, is very often forced to settle, even if the case has no merit.

Fighting back

Predatory attorneys have encouraged the culture of litigation and Americans have embraced it. It’s unlikely that this culture is going to change any time soon. The best way to fight back is to adapt to this environment by being proactive with your wealth.

Predatory attorneys go after easy targets, those with “deep pockets” and vulnerabilities they can exploit. The right asset protection plan puts up walls of legal protection around your assets, changing the landscape altogether. Potential litigants no longer see an open treasure chest ripe for the plucking. Instead, they see an imposing fortress whose defenses they are unlikely to penetrate.

Sollertis can help with asset protection

The Sollertis Master Asset Protection Plan™ is the framework for protecting all of the individual assets that contribute to financial success.  Based on an analysis of your needs, each plan is a customized blueprint outlining the types and mix of legal structures needed to best meet your specific goals and objectives.

Once a MAPP™ is designed, you have a plan in place to protect your assets and to guide business, personal and investment decisions. Unlike traditional asset protection plans that take a “one-size-fits-all” approach, a MAPP™ adapts to changing circumstances. Whether implemented all at once or over time, you will create greater financial freedom knowing you’ve legally protected the wealth you have earned.

Contact us today to learn more about the Sollertis MAPP™ and our unique approach to managing all of your legal needs.


This material has been prepared by Sollertis for informational purposes only and nothing herein is intended as legal advice for any particular or individual situation. You should not rely upon any information herein as a source of legal advice, and receipt of any such information does not create an attorney-client relationship between you and Sollertis. Viewers and readers should not act upon this information without seeking professional legal counsel. Prior results do not guarantee a similar outcome.

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