Peter Maxwell Sued Himself for Workplace Injuries

Here is a well-known tale. An employee who has an injury at work sues the employer for damages. They prevail, and the business writes off the settlement; that is the end of it. What transpires then if a self-employed person attempts the same thing? If you're Peter Maxwell, you manage to pull off one of the brazen yet most impressive legal maneuvers in history.

Chino, California-based Maxwell owned a manufacturing business there. He made foam flooring on the factory floor where he worked for the company, but one day his sweater got caught in a mixer. Due to his serious injuries, he engaged a lawyer to assist him in suing his own boss. To represent the business in the lawsuit, he retained a different attorney. You'll be shocked to learn that they decided to settle for $122,500.

The IRS was not amused when the corporation claimed the settlement as a business expense. Maxwell received two bills from them—one as an employee and one as an employer—returning the money. Maxwell went back to court and was successful when the judge ruled that he was qualified for both the payout and the expensing write-off.

Nationality: United States

Occupation: Businessman