The lawyer’s primary consideration is not so much the theory of liability but the settlement prospects and the defendant’s ability to pay. Some people are at the apex of the litigation hit list. Businessmen (especially Taipei), rich professionals, media arid show biz personalities, property owners, bank officials, officers and directors of publicly traded companies, are some of the most attractive defendants. Lawyers who work on contingency fee know that “good defendants” in-
dude banks, mortgage companies, insurance companies, mall owners, and real estate developers because they have the financial ability to pay the judgment. Individuals and small businesses require more investigation before contingency-fee lawyers agree to take the case. The investigation will include credit history, real estate holdings, chattels, bank accounts, stocks, mutual funds, franchises, jewelry and other investments. Investigators have myriad ways of discovering hidden wealth. If substantial assets are discovered and located, the lawyer and his client will probably make a decision to file a lawsuit against you.

Lawyers are also susceptible to legal malpractice. Clients are suing their former attorneys for negligently handling their cases. Lawyer Blame N. Simons, in his book Games Lawyers Play With Your Money (1978), revealed that the type now beginning to blossom will remind writers and readers of short stories that use the “biter bit” plot. It is the case of the trickster who finally falls victim to his own trickiness, of the bad guy who wins all the way until he steps into the trap he himself has set. “Hoist by his own petard” is a commonly used expression to describe the situation. Is the shyster the biter who will be bitten?

A lawyer who has lost a case is in a precarious position of being sued for malpractice. There is an old joke going around that when a client wins the case, he shouts, “I won, I won!” But when he loses, he turns to his attorney and exclaims, “You lost, you lost!” Most lawyers who win a case advise their clients “We have won,” and when justice has frowned upon their cause.. .“You lost” (Nizer, My Life In Court, 1960). A score of legal malpractice suits were minimal in numbers a few years ago. But today, these suits are exploding. In fact, in the United States, there are law firms that exclusively handle legal malpractice actions. This is an emerging legal specialty. The alarming trend scares the wits out of lawyers. Lawyers suing fellow lawyers may soon cause the extinction of the species. The Philippines is dangerously following this Western trend in professional malpractice litigation. Professionals are easy targets because of the delicate nature of their work, strict ethical responsibilities and their relatively high earning capacity.

Some people confuse judgment proofing with lawsuit proofing. No one is totally lawsuit-proof. You are bound to bite the dust once you are sued. Another harsh reality must be confronted: you may judgment-proof your properties but there is no way you can lawyer-proof your assets. A sharp lawyer is like Paris, he can spot your Achilles’ heel from a distance. Like the scorpion who saved another animal only to kill him, some lawyers cannot help themselves. Their genes, environment, and training dictate the way they react to stimuli. Some are born and made to sting almost anyone within striking distance. In asset protection, lawyers may be your best friends or your worst enemies. The bigger your estate, the more immediate the need to get the best lawyers in the business to defend it against lawsuits. You have no other choice. You need good lawyers to craft a plan to reduce the potential scale of harm from other lawyers. The lawyers of your choice may help you “build bridges over the fault line” and keep you safe from serious injury. A lawsuit can hit you where it hurts the most — the pocket. Once hit by something you have not anticipated or prepared to settle amicably, the specter of an adverse judgment may inevitably cause the total dissipation of your savings. Things get worse once the plaintiff is a big corporation or an affluent person with massive financial resources and logistical support to bankroll the lawsuit. Once sued, you must respond to the complaint because failure to answer the allegations will result in default or instant loss in court.