8 Steps in the Lawsuit Process

Here are 8 Steps in the Lawsuit process that every business owner should know.

  1. Analysis by Opposing Counsel
    1. Does an attorney think they have a case they can ARGUE… it doesn’t matter if they can WIN.
  2. Demand Letter from Opposition
    1. Attach a dollar amount or resolution to the claim (i.e.: apology, $$, etc.)
  3. Filing Lawsuit
    1. Only costs $500 to file in most states and the rest is on contingency.
    2. To defend you will have to pay hourly.
    3. This is what is known as legal extortion and why most cases settle.
  4. Discovery
    1. Depositions back and forth.
    2. Sharing of emails, books, documents.
  5. Mediation
    1. Opposing attorneys argue their cases to each other and usually settle.
  6. Trial and Appeals
    1. Only 3% +/- of cases ever get this far.
  7. Judgement
    1. Sole Prop and Partnerships likely attached the judgement to business AND personal assets.
    2. Corporations receive Attachment Order.
    3. LLC’s receive Charging Order.
    4. Even if you win, you may lose!
  8. Collection at Debtors Meeting
    1. Who is in control of when payment is made?
    2. What assets do you have to pay the judgement?

Ron Fossum

Today Ron serves as a Fractional CFO for 5 Separate Companies as well as running his own tax planning practice, Tax Plan Wealth. Their entire focus is on how to reduce their clients' tax bills by 50% or more… legally, morally, and ethically.
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