After reading about all the ridiculous judgments for really incredible lawsuits, the real winner turns out to be: skip to the bottom for the answer.
A woman won a lawsuit for almost $2 million, including legal fees. However, since the basis for her suit was "emotional suffering", all her judgment award, including the lawyer's fee (almost $1 million), well, that is all taxable income.
So the real winner is the IRS. The woman will have to pay more than she was awarded in taxes, or else refuse the settlement. Dilemma? Or serves her right for such a frivolous lawsuit? Only her lawyer knows for sure! And her lawyer got more in fees than her judgment.
Only in America: Part 3
Want to join? Register here. Already signed up? Click here to login!