Law Suits in USA are at an all-time high and business persons need to be on the alert says

The Barrett Company Communications - Kevin Wessell, who learned the value of incorporating via one of life"s hard lessons himself, heads California-based Companies Incorporated, which provides such professional business services as incorporating to asset protection to showing business persons how to reduce their tax bills. "We are in the midst of a lawsuit crisis in the United States," said Mr. Wessell, who is also the author of the best-selling book "How to Build Your Financial Castle". " If you are a business person in today"s marketplace you cannot afford not to protect yourself from lawsuits, which are on the rise in every state according to media reports".


"Several years ago I hired a CON-tractor who turned out to be a CON-artist. I got into a legal battle that lasted four years and cost me $157,000 and many sleepless nights. That painful experience gave me a passion to protect others from similar fates."

"One recent lawsuit in particular that was reported in the media recently clearly exemplified today"s litigious environment," says Mr. Wessell. I learned about the model that recently was awarded $15.6 million from well-known food manufacturer for using his picture without his permission. At first I thought nothing of it, but the more I thought about it in light of President Bush (news - web sites)'s actions on tort reform – which makes it harder for larger companies to be attached with class action lawsuits - I became more interested," said Mr. Weasel. "Why did a nationally-known, well-branded company not get permission? On what was the award based? Was it commensurate with the actions of the defendant, the food manufacturer? How does this impact my family? "

"Media reports say that in 1996, the model had gone to the defendant for a photo shoot. He was paid $250 with possible additional pay of $2000 if the photo was used for Canadian promotion. The photo was not used at the time and sat in a file until 1998 when a company employee pulled it out and assuming the company owned the rights, used it in a large campaign. The error was not discovered until 2002 when the model saw the photo and hired a lawyer."


The jury decided that the model was owed 5 percent of the company's profits for the years the photo was used. If the error had not been made he would have received $200,000 to $300,000. The jury decided that $15.3 was fair punishment for a simple employee mistake. "There was not evidence of this being a pattern for the defendant", Mr. Wessell noted.

"So what?" you might ask. "The company can afford it. But companies do not pay these awards. You and I do. In this case, it cost our family of four 20 cents. You might think this is not big deal, but tort awards are now totaling more than $300 billion per year. By 2009, it is estimated these awards will total more than $1,000 annually for every person in the nation. For my family, that's more than $4,000 every year and growing. In fact, tort costs are now 2.2 percent of our entire Gross National Product - proportionately two and one half times the rate in other developed countries."

President Bush's Tort Reform May Help
"So, what can be done? Could it be that law firms are the top contributors to federal and state campaigns? From 1990 to 2004, trial lawyers contributed $470 million to federal campaigns. The Bush Administration has decided it's time to act. An important piece of legislation has been signed into law to address this outrage," concluded Mr. Wessell. "Now, large class-action lawsuits that are commonly filed against big companies must go through the federal court system where large awards are far less likely. More must be done. The small business owner without such deep pockets needs protection too. That is why legal professionals highly recommend that a small business operates under a corporation."

Established in 1977, Companies Incorporated serves both large and small businesses in all 50 states and in some foreign locales with incorporating services, establishing LLCs (limited liability company) to creating offshore corporations aimed at shielding assets to reducing their annual tax bills. CI, a privately - held company also provides services to establish S Corporations and non-profit organizations. CI holds national seminars on incorporating (Mr. Wessell"s next seminar will be held The Imperial Palace Hotel, Las Vegas, April 16, 17). CI is based in the Los Angeles area at 27200 Tourney Road, Santa Clarita, CA 91355. Telephone is 1-800-959-8819. More information on all of CI"s services can be accessed via the company"s web site at www.companiesinc.com

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Charlie Barrett, The Barrett Company
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310-471-5764
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