Being involved in a lawsuit is risky, whether you’re the plaintiff or the defendant. It’s important for you to have a strong grasp of the process of dealing with a lawsuit so that you are fully prepared.
When considering a lawsuit, your first step should always be a rigorous analysis of the amount of the potential judgment versus the likely legal fees and costs. Is your lawyer charging only a contingent fee or are you paying your lawyer on an hourly basis? In a case where your lawyer is charging only a contingent fee, this economic analysis is less a concern for you than it is for your attorney. But, if you are paying your lawyer on an hourly basis, the economics of the case are radically different. Now you really need to know in advance what the legal fees and costs will be, the likelihood and amount of a potential award. The problem is that none of these variables can be estimated with any degree of accuracy; there is no way to know how large the legal fees and costs will ultimately be because so much depends on what the defendant and his or her attorney may do.
Be aware of “CounterPunch” lawsuit: Many a time defendant party will counter sue you instead of a settlement and an end to the litigation. This tactic is known as a “counterpunch” and it’s used by every experienced trial attorney whenever possible to hit back hard against the plaintiff by raising the stakes and dramatically increasing his or her risk of loss.
Make sure you don’t choose a bad egg: In addition to uncontrolled legal fees and the risks of a counterpunch, another serious issue for any plaintiff is the liability that can arise from the actions of your attorney. If your attorney (the bad egg!) makes a mistake, you could be on the hook for the damages. Sometimes an attorney will name everyone in sight as a defendant, hoping to prove negligence later, based on what is learned in subsequent discovery. However, if your attorney names someone as a defendant without a sufficient legal basis, that defendant can sue you for malicious prosecution if he wins the case or is dismissed from the lawsuit.
Once you initiate a lawsuit there is no way to predict what will happen. So, take precaution! Before proceeding with a case, make sure that your legal fees and costs are limited to an amount that makes sense relative to the expected recovery. You will be able to do that if your attorney agrees to handle the case for a contingent fee or a total fixed fee. Either of these arrangements shifts the risk from you to your attorney. Although he or she may not want the risk either, he or she is in a much better position than you are to judge and accommodate the risks. If no attorney can calculate the costs in advance and is willing to bear the risks then chances are that your case is a bad investment for you, as well.
Finally, once you have controlled the legal fees, try to limit your risk of loss from a counterclaim or other unexpected reversals. Before any lawsuit is initiated, review your asset protection options to see if your home and other savings can be protected from potential loss. These strategies won’t guarantee a victorious outcome to your case. Although, hopefully they have given you a better understanding of what needs to be done if your worst nightmare comes true!
Learn more about physicians insurance and financial planning by calling at (866) 972-3262 or complete this short life insurance quotes request now. Neither BeamaLife nor any of its employees or agents are authorized to give legal advice. Individuals are encouraged to seek the guidance of their own personal legal counsel.
