The Case of the Public Records

Awl You Need

I’ve told the story about my dad, how he always found a way to solve a problem with his trusted, pointy awl; though for me, my tool has been the public record. I’ve argued many reasons to use public records, but none more potent than this. They are there. And my most prescient advice, you only know if you search. You cannot fix a problem with tools you never pick up. The same is true with public records: you have to invest to learn, and that small cost pays for itself in understanding.

Three recent engagements demonstrate this recommendation.

The Case of Was There Really Anything Else

A family came to us with a lot of concerns about a soon to be ex-spouse.  They had searched. Different family members  pointed their googles and claudes. They found all the old addresses, related companies, lawsuits. What else could I do? Search.

I cautioned them that their initial searches might have uncovered everything there was to find. I also explained that my paid subscriptions gave me access to additional public-record sources. Also, I could search more precisely. Finally, my experience helped me recognize things that may not seem that way to others.  Searches were conducted.

Two of the things I did gave the family a deeper understanding of the future ex-spouse.  First, I took a known court action and dug through the filings, extracting some vital nuggets. Second, I did not limit my searches to that person’s name. In particular, I used a business address (that turned out to be a mail drop), which in turn identified several real property transactions unknown to the family.

At the outset the family wasn’t sure there was more to know, but they were thrilled when the searches showed that there was.

The Case of Why You Need Me

Public records are not unique to the United States. In many places around the world, criminal records, corporate registries, property records, and other key records can be searched. Not surprisingly, the types of records available vary.  For instance, in the United State, private company data is limited,  yet we have ample access to court records. In many places, it’s the opposite. If you are contemplating a transaction involving an American company comprised of affiliates in South America and Europe, you need to know what is out there across the globe. You need records.

Gathering public records from six or seven countries in one fell swoop presents several challenges. You must coordinate resources, determine which records are available, and obtain the documents you need. You must also reconcile information from different sources to establish whether the records relate to the same people and entities and whether, together, they provide a useful and reliable picture.

This was not an instance where the client was trying to solve an intricate problem. They just needed to know what was out there –  extenuating circumstances, hidden claims, unknown affiliations. It was a case of the less that came back, the better, as long as the records were checked.

The Case of I have a Feeling I know Where the Money is Going

A company had a judgment and did a lot of public record searching on the debtor-defendant. While they were stacked with relevant public records, none were getting them closer to collecting. Perhaps change tactics.

The debtor-defendant company had three principals. Look at them. Early in the looking, it became clear that the three principals had changed their focus from the debtor-defendant to three new operations.  Which also led us to look at an employee who had moved from the debtor-defendant to the new operations.  For all four of these people, we found ample records: business affiliations, regulatory matters, property filings that helped put things in context and could be used to assist in the recovery of the judgment.

Sometimes the key isn’t searching harder. It is searching differently.

The Shot Not Taken

The Great One, Wayne Gretzky’s quote about missing 100% of the shots not taken, has already inspired a post.  In it I laid out several reasons why people decided against due diligence research. Sometimes the reasons make sense. Except you do not know what kind of public records exist until you look for them.

In each of the above cases, relevant records were out there to check. There was no guarantee anything of value would surface. In one matter, the absence of records was the most valuable finding. Without searching, you would not know.

We call them open‑source, public records because they’re available to anyone willing to look. Often, the information isn’t hidden. It is overlooked. In the end, the cost of a few searches is small compared to the cost of not knowing. Public records don’t reveal themselves. They are revealed by looking.

Computer forensic analysis, document and email keyword searches, reviewing trial balances, etc., can easily get to the six-figure range, depending on the case. Public record searches are far less costly but have the potential to break a case wide open. Don’t overlook them.