Insurance & Asset Protection

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FTC Act

The Federal Trade Commission (FTC) Act--which prohibits unfair, deceptive and fraudulent business practices--represents a common route that small business owners can use to involve the federal government in a lawsuit against another party, especially because the term "unfair and deceptive" business practices is so broadly interpreted by the courts. Each state has its own version of the FTC Act, which can similarly be used to involve the state government in the action.

Apply Leverage

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.

Enact Disclaimers

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.

Use Choice of Law Clauses

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.

Consider Exculpatory Clauses

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.

Document Retention and Destruction

Having a plan for pre-trial discovery is one way to control the risk factors in litigation.

Preparing for Depositions

Having a plan for pre-trial discovery is one way to control the risk factors in litigation. Since the tools of pre-trial discovery could be particularly damaging for a small business owner, he or she should be prepared.

Case Study: Punitive Damage Awards

Until 1996, punitive damages represented more of a risk factor inherent in litigation, rather than an opportunity to control risk factors, for small business owners. Specifically, during the 20-year period leading up to 1996, business owners suffered extremely large punitive damages awards. These awards, in many cases involving larger businesses, amounted to tens of millions of dollars, and some awards exceeded $100 million dollars. In 1996, however, the U.S. Supreme Court established guidelines for punitive damages awards that have significantly reduced the size of awards since that time.

Statutory Reimbursement Exceptions

Generally, the U.S. courts lack a loser pays system, which is a serious risk factor inherent in litigation. One way to control these risk factors is to find exceptions that make the loser pay in a lawsuit.

Plan for Pre-Trial Discovery

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.

Contract Reimbursement Clauses

Generally, the U.S. courts lack a loser pays system, which is a serious risk factor inherent in litigation. One way to control these risk factors is to find exceptions that make the loser pay in a lawsuit.

Seek Punitive Damages

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.

File Counterclaims

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.

Elect Mediation and Arbitration

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.

Controlling the Risk Factors in Litigation

The civil litigation system itself represents a significant risk factor to the small business owner, because it makes it more likely that a lawsuit will be filed and that significant damages will be awarded to the plaintiff. However, by understanding these risk factors and then by controlling them, the small business owner can significantly reduce overall exposure to liability.

Mediation and Arbitration Clauses

One way small business owners can control the risk factors in litigation is by entering into mediation and arbitration agreements.

Make the Loser Pay

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.

File in Small Claims Court

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.

Impact of the Government as a Plaintiff

When navigating the court system, a small business owner encounters certain risk factors inherent in litigation.

Ease of Proving Monetary Damages for Negligence

When navigating the court system, a small business owner encounters certain risk factors inherent in litigation.

Ease of Proving Negligence

When navigating the court system, a small business owner encounters certain risk factors inherent in litigation.

Right to a Jury Trial

When navigating the court system, a small business owner encounters certain risk factors inherent in litigation.

Exclusion of Evidence from Trial

When navigating the court system, a small business owner encounters certain risk factors inherent in litigation.

Case Study: Jury Trial Judgments

In a recent Connecticut jury trial, a plaintiff was awarded over $500,000 in monetary damages in a case based on an auto accident. According to news reports, the defendant, a New York Supreme Court judge, admitted he caused the accident. However, he testified that the accident was minor and did not require either an ambulance or a tow truck.

The Tools of Pre-Trial Discovery

For the small business owner, the liberal availability of pre-trial discovery is one of many risk factors inherent in litigation.