Since the US Air plane made it's big splash, I keep seeing little article pop up here and there. This is the latest I've seen:
http://www.usatoday.com/travel/flights/2009-01-26-us-airways-river-crash_N.htm
How long before they decide to start going after the flight crew? In today's age of Gimme, you have to wonder if the company will assist in the legal action. Will ALPA be there for a long and bloody civil case? I just find it concerning that me fellow crew members, company and I could be hauled through a process that could have far consequences over something I had no control over. How do you plan for that possibility?
On a side note, I hope that if there is a class action brought against US Air, the judge tells them all to pound to sand.
I think it's a very valid concern and a concern that I share. In fact, I think the AMR pilots in the Cali crash had their estates sued but I don't think anything came of it (luckily for them). The lawyers representing the victims will hopefully go after the deep pockets (the airline), but who's to say they just won't throw you and your Captain/Co-pilot/Bunkee in with the pot?
As far as planning for it, I don't think there are very many options. If you're a guy flying a 200 passenger airplane, what do you do? Do you buy liability insurance for
1 billion dollars, assuming that each passenger might sue you or your estate for 5 million each if you're found at fault in a fatal accident? 5 million per passenger might not even be enough! No matter what each human life lost is "worth" in the eyes of the law, how much is that insurance going to cost a pilot?
One of the other options is to structure your assets in such a way so that nothing is in your name. If you're married, for example, all of your major accounts could be in your wife's name or perhaps placed into a trust. But the downside is, what if you get divorced?! Or what if your wife herself is personally sued? You'd have to obviously consult a lawyer about this kind of stuff and it may or may not be 100% effective.
I've read on various financial forums that guys with "high risk" sue-happy professions (like obstetricians or the doctors that read mammograms) structure the ownership of their assets so that there is some legal "built-in" resistance to lawsuits. For example, depending upon your state law's, IRA's, 401k's, and/or pensions may be immune from judgments against you and your estate. That's why OJ got to walk around with pocket money after he lost his civil suit- they couldn't legally touch his pension. Annuities can also fall under this type of protection, and it's pretty easy for a pilot to invest in this type of insurance/investment. Unfortunately, however, most are pretty expensive (relative to what we normally can invest in) and limit your investment options. Some guys build fancy houses in states with homestead exemptions, which can provide protection from creditors- Florida and Texas come to mind.
If you're interested in asset protection, here are some good places to start:
This book is often recommended when I read on financial forums about asset protection. I haven't read it so I haven't a clue if it's good or not.
This website is associated with the book and has some decent links. It also has a state by state list of assets that are protected against judgments. I know, however, that some of the state info is not current so you might want to use it just as a guideline.
Here's another
website and a
forum. You have to keep in mind when you read forums like this that some posters are looking for
illegal ways to hide wealth, so take some posts with a grain of salt, unless you want to end up in jail with a new wife/cellmate
Good luck.
