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"A lawyer with a briefcase can steal more than a hundred men with guns." – Mario Puzo, The Godfather

Tuesday, January 4, 2011

Should you hire an attorney pursue a lawsuit?


If you are considering a lawsuit as a plaintiff (you want to be paid for damages from the defendant), you need to consider carefully if it is worthwhile.

If you are hoping to hire an attorney on contingency where your attorney only gets paid if you prevail (see earlier post) then the attorney will do much of the due diligence to determine if your case is worth his time.

But if you are paying by the hour, you are much less likely to hear from your attorney (early on) that you are wasting your money.

Beyond considering if you have been wronged and if you have a case, the most important factor to consider is will you ever collect. If the defendant is about to declare bankruptcy, you will likely collect nothing but frustration. If the defendant is a small company, what prevents the defendant from simply folding up shop? For individuals and small companies it is very tough to determine what the wrongdoers assets and liabilies are. The fact that they drive a nice car and live in a nice home means nothing these days. The car may be leased and the house is likely underwater relative to the mortgage. At least on the defendant's real property you can go down to the county recorder's office and see what liens are already filed against the property.

So first and foremost start with an analysis of the ability to pay a judgment by someone you are considering suing.

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