I'm with Locke here. What difference does it make? As long as you properly declare your income, and aren't in a position that you're going to get sued, you should be ok.
Yah, the whole point is that living in this litigious society means anyone can sue for anything. Losing a house doesn't necessarily mean you lost a reasonable case.
It means you lose in trying to fight. Essentially, I'm trying to spend as little on lawyers as possible.