Civil Asset Recovery: Who Can Sue and Be Sued

People seeking to recover stolen assets may consider initiating legal proceedings in a domestic or foreign court. However, recovering stolen assets, particularly across international borders, is highly complex and should not be attempted without assistance from a skilled and experienced trial lawyer.

Burgwald Legal specializes in identifying, locating, and recovering stolen assets, even across international borders. Attorney Ralph Burgwald studied in Münster, Germany, and at the Emory University School of Law in Atlanta, Georgia, USA, on an academic scholarship. He practices in Munich, Germany, and is admitted to the bar in the US states of New York and Georgia. His practice focuses on the recovery of assets concealed by debtors.

Why File a Civil Lawsuit to Recover Stolen Assets?

A lawsuit is a civil (as opposed to criminal) legal action between two private entities. The “plaintiff” (the person or entity filing the lawsuit) claims to have suffered a loss because of the defendant’s actions and seeks financial compensation or the return of the stolen property. Unlike a criminal case, where a conviction is necessary before a government can attempt to confiscate the proceeds of a crime, a civil action is brought by an individual or individuals to recover the stolen property.

A plaintiff can use various investigative tools to identify and locate stolen assets. In addition, the plaintiff can exert more control over the legal proceedings than in a criminal case. Finally, civil lawsuits have less demanding requirements to link a defendant to stolen assets and offer broader categories of compensation and a wider choice of defendants to sue.

Who Can File a Lawsuit to Recover Stolen Assets?

In most jurisdictions, any person or entity that suffered a loss or entered into a contract involving stolen property can file a lawsuit. To be eligible to file a lawsuit, the party must have standing, meaning the plaintiff must have suffered a financial injury attributable to a named defendant. The plaintiff must be able to identify specific evidence to prove they are the rightful owner of the assets in question.

Who Can Be Sued?

The “defendant” is a person or entity from whom relief is sought. In most cases, a plaintiff can bring a claim against the party who has possession of the stolen assets and any party who assisted in stealing or concealing the stolen assets.

Courts often evaluate potential defendants through the lens of a principal and agency relationship. An “agent” is a person or entity that acts for or on behalf of someone else, called the “principal.” In this context, the principal is the person or entity that stole the assets, while the agent is any person or entity who participated in the theft or concealment of the assets. The principal and any agents could all be named as defendants.

The agency relationship can be characterized as a contract under which the principal and agent are linked when the agent agrees (implicitly or explicitly) to act for the principal’s benefit. Establishing the principal-agent relationship can be an important step in determining who can be sued to recover stolen assets.

When considering potential defendants in a lawsuit, in addition to the person or entity who stole the assets in question, it is important to consider others who may have participated in stealing or concealing the assets. This may include relatives and close business or personal associates of the principal defendant, as well as intermediaries who may have played a role in the theft or concealment of assets, such as banks, accountants, lawyers, art dealers, real estate agents, and others who may have assisted the wrongdoers.

To prevail, the plaintiff must prove a defendant knowingly assisted in the theft or concealment of assets. In addition to holding a principal or agent liable for the harm, a plaintiff could learn additional information that could be beneficial in pursuing additional claims.

What Are the Benefits of Filing a Civil Lawsuit to Recover Stolen Assets?

Unlike a criminal case, where only a government agency can act to recover stolen assets once the defendant has been convicted of a crime, there are significant advantages to filing a civil claim for asset recovery.

In a criminal case, the government brings criminal charges against a defendant. If the defendant is convicted, the victim can seek recovery of assets that were taken illegally. But in a civil case, an individual or private entity can file a lawsuit seeking recovery of stolen assets directly from the defendant or their agents. This gives the individual plaintiff significant control over strategic decisions concerning the direction of the lawsuit.

In addition, the burden of proof is lower in a civil lawsuit. In a criminal case, a defendant is presumed innocent until proven guilty beyond a reasonable doubt. This is the highest standard of proof in the American legal system. But, in a civil lawsuit, the plaintiff only needs to prove a fact is true by a preponderance of the evidence to prevail. This is the lowest standard of proof in the American legal system and means it is only slightly more likely than not that a fact is true.

How Burgwald Legal Can Help

If you are considering legal action to recover stolen assets, Burgwald Legal can help. Attorney Burgwald primarily serves clients in Germany and works with a worldwide network of colleagues focused on identifying and recovering stolen assets. To put our expertise to work for you, contact Burgwald Legal today.