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Frivolous lawsuit filer

Hello,

I have a situation on my hand that is causing me no end of grief. Over the past 3 years, I have painstakingly built an online informational website with a relatively robust viewership. This website generates revenue from advertisements.

Anyway, recently an very unscrupulous individual that has attempted to sue numerous companies for all sorts of frivolous reasons, has decided that he wants to sue me because I won’t let him advertise for free in my online forums.

He has successfully blackmailed two other sites, and is now trying to sue a third in the courts. He has stated to the owner of one of these sites that he gets off on filing lawsuits and various motions with the courts because he knows it will cost money to get a lawyer and go through the motions to fight him in the courts.

This person is clearly a sick individual, but it has already cost the owner of the site that is fighting him in the courts over $20000 just to try to get the frivolous lawsuit dismissed.

Anyway, this individual has basically threatened to do the same to me.

Which brings me to my question. My site doesn’t make a whole lot of money. If he attempts to sue me and I can’t fight him in the courts due to the costs associated with it, is bankruptcy an option? Can I file for bankruptcy protection and thereby avoid the associated costs of dealing with this guy? If it went to court I would win, but that doesn’t help me if it’s going to cost me $20000 or more. I don’t even make that much from the website in an entire year!

I am based in British Columbia. The frivolous lawsuit filer is in the US.

Any help or advice would be greatly appreciated. I can provide you with further information if you have any questions. To give you an idea of what I’m dealing with, this individual has attempted to sue one of the largest and most well-known software companies in the world because he claimed to have invented one of their trademarked brand-names. When he lost that lawsuit, he came after a totally different industry claiming to have a cure for a prominent disease.

Thanks in advance,
Worried Guy

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One Response to “Frivolous lawsuit filer”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

I want to recommend in advance that it would be important to consult with both a trustee and legal counsel as you have identified many important issues. However, I can speak to the major issue identified. The filing of a bankruptcy will absolve you from having to deal with the lawsuit as long as you haven’t been involved in fraud, misrepresentation or misappropriation. Ultimately in a bankruptcy all your assets and (or the assets of the corporation) vest in the trustee, this would include the website and any potential awards from a lawsuit. As well, the trustee would become the one who would make all decisions pertaining to any legal action. Having said this it is vital for you to sit down with someone soon so to determine if this is the best course of action to take if your hand is forced.