6 Examples of Frivolous Lawsuits (+ How to Guard Against Them)

A guy sued Budweiser in 1993 as his six-pack fell short of the ideal beach visions of gorgeous ladies. Though it seems like a joke, this was a true case – a frivolous complaint the court thankfully rejected. 

Frivolous lawsuits – baseless legal actions devoid of any actual legal worth – are Often filed for the attention they may bring, they are also meant to harass and manipulate.

For the ultra-wealthy, these cases represent a unique threat. Regardless of the reality of their claims, you start to attract attention from individuals looking for fast cash when your net worth hits eight or nine figures. Even a bogus lawsuit can restrict your assets, harm your image, and pay a lot for defense.

Here, strategic asset protection becomes not only smart but also absolutely necessary. Wealth that is unprotected is vulnerable. Dominion makes it bulletproof.

6 Examples of Frivolous Lawsuits

Our legal history’s annals abound with litigation defying reason and common sense. Here, we explore 6 such cases.

1. Overton v. Anheuser-Busch

We begin with Richard Overton, who took Anheuser-Busch to court in 1993 saying their Bud Light beer lacked the expected visuals of bikini-clad ladies on a beach. The court quickly dismissed this ridiculous claim, but one can only imagine the time and money lost on such a pointless endeavor.

2. Pearson v. Chung

Administrative law judge Roy Pearson sued his neighborhood dry cleaners for a shockingly $67 million in 2005. His reason? His clothes were misplaced momentarily from the dry cleaners.

Pearson argued they were not his even after the jeans were returned and started a court fight that nearly bankrupted the small business. The court decided in favor of the dry cleaners, but the anguish they underwent and the harm to their image wasn’t so easy to reverse.

3. Rosenberg v. Google

Following their walking directions onto a highway, Lauren Rosenberg, in 2009, chose to hold Google liable for her injuries after she was then hit by a car.

Although at first look, her lawsuit seems funny, it emphasizes the possibility of reputation damage even in cases when a business wins. The headline alone, “Woman Sues Google for Bad Directions,” might make some wonder about the dependability of the tech behemoth. 

4. Romine v. Stanton

James Romine of Digital Homicide Studios sued a reviewer in the realm of video games for $10 million, alleging the negative assessment of his game amounted to “assault, libel, and slander.”

The matter was dropped, but not before Valve, the platform running the game, deleted all of Digital Homicide’s titles, therefore severely damaging their company.

5. Estavillo vs Twitch

The 2020 lawsuit Erik Estavillo filed against Twitch pushed absurdities to unprecedented levels. Seeking $25 million in damages, he accused the streaming site for his self-proclaimed sex addiction. The matter was dismissed as frivolous, but not before it attracted much attention and ridicule.

6. Liebeck v. McDonald’s Restaurants

The notorious McDonald’s hot coffee case is often used as a shining example of a frivolous lawsuit. But this one “frivolous” case that merits more inspection.

The truth was significantly more serious, even if the headlines presented the plaintiff as greedy. Stella Liebeck spilled coffee that was kept at extremely high temperatures (40°F higher than allowed) and had third-degree burns that required skin grafts.

McDonald’s had hundreds of similar complaints but refused to alter its procedures. Liebeck first sought just $800 for medical bills, but McDonald’s refused that, too.  Once McDonald’s was found guilty by a jury, Stella was eventually awarded $2.7 million in damages. 

Though occasionally funny, these illustrations draw attention to a serious problem: frivolous lawsuits are not harmless pranks. For the individuals and businesses singled out, they may inflict major emotional and financial pain as well as reputational damage reputations – all while squandering precious judicial resources.

Why Are Frivolous Lawsuits Filed?

Although some frivolous cases result from actual mental disorders, most are driven more deliberately. For some, it’s about straightforward harassment. Even if the accusations are unfounded, the judicial procedure itself can be used as a weapon, sap a defendant’s finances, damage their reputation, and cause psychological distress.

Others hunger for the limelight. Particularly, advocacy groups often utilize the courts as a platform to highlight their cause, even if the legal grounds are not strong. How ever fleeting it might be, the media publicity can help with more general objectives.

Let us not be naïve, though. Often these pointless behaviors are motivated by the appeal of getting a large payment. Although there is little likelihood of winning, some are tempted to try their luck given the possible rewards.

For individuals with significant wealth, even a modest settlement may be considered a success – a cost worth paying to have a nuisance gone.

For high-net-worth individuals who are seen as having vast resources and a sensitivity to reputational damage, this intricate interplay of motives makes frivolous litigation a continual concern.

How to Guard Against Frivolous Lawsuits

Wealth is a high-stakes game, and defense is a preemptive attack rather than a response. Here at Dominion, we think about protecting your assets before they become targets.

Our method revolves mostly around offshore asset protection trusts. It’s a fortress designed to protect your wealth from prying eyes and frivolous claims. It’s also a powerful legal tool. Here’s how it works: As the grantor, you move assets into the trust.

A trustee, a neutral third party (often a Dominion professional), manages these assets on behalf of the beneficiaries you designate, which could include yourself, your family, or future generations.   

The offshore component is vital in protecting yourself from frivolous lawsuits. Establishing a trust in a nation other than your own creates a legal barrier that makes it rather difficult for creditors and domestic courts to access your assets. It’s about taking a strategic position, not about hiding.

Dominion’s part in this process is extensive. We offer professional advice on the best jurisdiction and trust structure design. Acting as trustees, our seasoned experts ensure objective administration and safeguard your interests.

But we transcend mere defense. We actively oversee the trust’s assets using our great financial knowledge to increase your money while it is still under protection.

Although our main instrument is the offshore trust, we also use secondary techniques to provide layers of protection. Though limited, insurance coverage can offer a first line of defense against some legal claims. Offshore bank accounts create even another layer of uncertainty and complicate the identification of your assets for possible lawsuits, frivolous ones included.

Dominion is different because we utilize a multifaceted strategy catered to your unique circumstances. We are aware that asset protection is not a universal fix.

One must have an extensive knowledge of international law, financial markets, and the changing scene of legal risks.

Working together, our team of lawyers, financial consultants, and intelligence analysts provides a degree of security absolutely unparalleled.

Dominion Stands Ready to Safeguard Your Wealth from Frivolous Lawsuits

In the need for viable asset protection, Dominion is unique. Our intelligence-grade strategies paired with our worldwide network of legal and financial professionals provide an unmatched degree of defense.

Every client is different, so we customize our approach to your particular needs and issues. We are here to protect your legacy for future generations, and our dedication to your financial well-being is not a sprint but a marathon.

We urge you to arrange a meeting with our team if you are ready to take charge of your financial future and get the peace of mind that comes with real asset protection.

Though they are always a possibility, frivolous lawsuits are not something you have to worry about with Dominion. We enable money to grow, not only defend it. Don’t leave your assets vulnerable. Let Dominion offer the relentless protection your wealth deserves.