That is an excellent idea, Jay. It works very well. The big problem a marshal has is trying to locate property which is non- exempt from execution for a stubborn defendant who refuses to pay a judgment or arbitration award.
I had a case not long ago in which my client did know the bank account location of the defendant. It was an easy matter to issue a bank execution, and have the marshal deduct the funds from the defendant's bank account.
Defendants can be very creative in isolating assets from the satisfaction of a judgment. The planning can often be in the initial setting up for business. One very effective method is to set up two corporations or LLC's. One holds title to the assets, and does nothing more. It leases the assets to the other corporation or LLC through a series of short term leases with no automatic renewal clauses. The other corporation or LLC takes all the contractual risks, but holds title to no assets other than the buy in funds for shareholders or members of an LLC. If the other risk assuming corporation or LLC becomes a judgment debtor there is little if anything upon which a plaintiff can execute other than the short term leases. The leasehold status of the assets makes them very unattractive. When the leases expire...the assets go back to the title holding corporation or LLC.
Usually the same individuals are the corporate officers/directors of both corporations or members of both LLC's. They draw off the profits of the risk assuming corporation or LLC through their salaries. As long as they do not involve themselves in tortious or criminal conduct...they are not at risk since the contract was executed between the corporation or LLC and its client. The corporation/LLC has a separate legal identity for purposes of contract law.
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