Tax Consequences of a Settlement in a Tort Action

When a plaintiff and a defendant enter into a settlement of the plaintiff's tort action, the tax consequences of the settlement will depend upon whether the damages are allocated in the settlement agreement.

The Basic Law of Fraud

As a general rule, it is not illegal to say something that is not true. The general rule probably evolved from the fact that, in addition to engaging in intentional deception, human beings can simply be mistaken. It is also true that some false statements do not deceive because they come from sources known to be unreliable. If we do not rely on the mistaken statements of others, they do us no harm.

Abuse of Process

It should be obvious that the purpose of the civil justice system is to permit people to obtain justice. Unfortunately, people sometimes try to use the civil justice system for improper purposes, such as revenge. As one would expect, using the civil justice system solely for improper purposes is prohibited by law. The personal injury lawsuit that addresses improper use of the civil justice system, and improper use of the criminal justice system other than malicious prosecution, is known as abuse of process.

Tort Law - Generally

Apart from legislation granting a right to sue for a specific harm, personal injury law generally consists of tort law and the civil procedure for enforcing it. This article discusses the words used to describe those who commit torts and how tort law is a particular collection of accepted legal theories for suing people for money.

Damages in Different Types of Lawsuits

Damages are awarded to an injured party who suffers harm, loss, or damage as a result of a defendant's intentional or negligent conduct. The type of lawsuit brought depends upon the nature of the harm, loss, or damage caused, and the type of damages awarded depends upon the type of lawsuit brought.