By: Wayne Patton, FHLF co-counsel

In this three part series, I’m going to analyze ways in which you can insulate your assets from the legal system.  Part I (this article) will discuss why it’s important to be “judgment proof.” Part II will delve into different types of assets that need protecting. Part III will bring everything together in terms of establishing a plan.

Protection from Lawsuits

What is the best way to discourage a plaintifs’ attorney who works on contingency fees? The most effective method is to make sure you’re overlooked by them. Not having any assets is one way to make sure that happens. In the legal community, people without any assets are called “judgment proof.” Being judgment proof is an excellent way to protect assets from lawsuits. Attorneys want to make the easy money. They don’t want to waste time pursuing defendants that will be unable to pay.

Remove the Contingency Fee, Remove the Incentive to Sue

Again, most plaintiffs’ attorneys work on contingency fees. You’ve seen those guys on T.V.: “We don’t get paid unless you collect!”

Personal injury and malpractice attorneys do not receive upfront retainers from clients. They don’t bill by the hour either. The only way these lawyers get paid is by winning or settling cases and collecting. If a plaintiff’s attorney loses a case, they get no compensation and are often “out” the expenses of litigation (e.g. court costs). The same thing happens if they win but can’t collect.

It’s obvious that personal injury and malpractice claims attorneys must evaluate several factors when deciding whether or not to take on a new case. First, they must determine the likelihood of establishing liability (i.e. winning the case). Second, they have to determine if the defendant will be able to pay.

The defendant’s ability to pay is a critical factor. If a potential defendant is judgment proof, then they are not considered an easy target.  As the saying goes, “If you’ve got nothing, you’ve got nothing to lose.”  Pursuing a course of litigation against a judgment proof defendant would be a waste time and money for most personal injury and malpractice attorneys. Even if liability can be established, there is no way to collect. If there is no way to collect, there is no way to get paid. It’s that simple.

It’s All About the Money

Plaintiff’s attorneys are in the game to make money. It would be an absolute anomaly to see a lawsuit filed against a business or individual that does not have assets and the ability to pay.

The takeaway is that being judgment proof provides an excellent form of lawsuit protection for your assets. It’s an easy way to deter litigation. How this applies to a person with significant assets will be discussed in the third part of this series.

If you’d like to learn more about asset protection planning
, please call us today. Mention this article or that you found us through the Florida Healthcare Law Firm, and we’ll waive our customary $279 analysis fee.

Making the right hiring decisions for your company is critical to your business success. But getting it right isn’t easy.

We all know the negative consequences of making the wrong hire – it can lower your team’s morale, hinder productivity, and even impact customer relations. But did you know that the cost of replacing an experienced worker who doesn’t work out can cost 50 percent or more of that individual’s salary and these costs go up if the employee has specialized skills such as nursing

There are many things you can do to ensure you make informed decisions and hire quality employees and one of them is to use Background checks.

Reasons to Conduct a Background Check

A pre-employment background check can not only save you money in the long run, it can also protect your business. How? If your employees come into direct contact with your patients (for example, in a care capacity) and cause harm to a patient, your practice can be liable if that employee has a criminal record. A background check can also provide insight into an individual’s behavior, character, and integrity.

Which Types of Background Checks Can and Should You Conduct

There are several background checks that you can consider as you build a profile of a future employee. Not all of them, however, are appropriate or even possible for every company. For example, how you may employ the information gleaned during a criminal background check when making hiring decisions varies from state to state. Furthermore, any check on an individual’s credit score or military service requires consent.

Stay Within the Law by Working with a Screening Firm

Many private screening firms will offer complete background checks while helping you stay compliant with the law, although you should concentrate only on checks that pertain to the job at hand unless you need to know every little detail about your next employee and have the budget to pay the costs.

Do Your Own Detective Work

While an outsourced screening firm can help you comply with the law and run the checks your business needs, there are still some basic checks that shouldn’t be ignored that you can do yourself:

• Verify what’s on the Resume – Call colleges and universities to verify the degree earned and ask previous employers to confirm the applicant’s work history (not a reference just a yes/no confirmation of tenure).
• Use the Web –You’re not looking for dirt on this one, but a quick web search can actually help you round-out the profile of your future hire, their interests, achievements, and even mitigate information that a formal background check has revealed.

 

HCRC Staffing can help with a full complete background check, please call us for details at 267-251-5275

Brian Torchin

Healthcare Recruitment Counselors LLC

255 South 17^th ST suite 2703

Philadelphia PA 19103

www.healthcarerc.com

[email protected]