Just in case you need another reminder to develop your own personal asset protection plan…
More than half the states have tried to place caps on jury awards in malpractice cases. But the caps have been struck down by courts in several states. On Monday, the Georgia Supreme Court (in a seven-zero decision) struck down a 2005 state law that capped jury awards at $350,000 for the pain and suffering of a malpractice victim. The court ruled that the state could not impose such a limit on the jury. Some states seem to be accepting limits and others are not. There does not seem to be a clear national trend at this point in time. You can read more about this recent court decision in either the New York Times or the Augusta Chronicle.
The Georgia Supreme Court decision is another reminder that physicians should not simply wait for state legislators or the courts to protect them from liability claims. Malpractice insurance is of course essential, but you should not stop there. There are laws that allow you to protect assets — and you should take advantage of them to the greatest extent possible. From simple steps like maximizing contributions to qualified retirement plans to more sophisticated planning with family limited liability companies, there are a variety of asset protection strategies worth considering. But do not wait for state legislators, the courts or anyone else to help you. Instead, focus on your own personal asset protection plan.