Disclaimer: This article should not be treated as legal advice. It’s recommended that readers still consult legal counsel and contact a lawyer should they have any concerns regarding business litigation.
If you’re a business owner, you probably know how important it is to always make sure you have plans for a lot of things. Not only should you focus on how to gain profit, but also how to sustain the profitability you generate. However, it’s important to realize that there’s also good business practices present if you anticipate even a wide variety of circumstances outside your business’s finances, such as the legal aspect. If, for instance, your business has come into a tricky legal situation and an external party has decided to sue your company, here’s what to consider if you’re going through business litigation.
Business litigation can be a bit tricky to understand, especially since the concept tackles a variety of legal aspects. However, it’s important to have a good idea of what to consider if you’re going through business litigation, especially if you aspire to settle business litigation cases smoothly and without much hassle.
Do remember however that if you need extra clarification regarding business litigation, it’s better to consult a lawyer or a legal professional in order to get a more in-depth look on things you have to consider, especially if it’s specifically related to your company as a specific enterprise. Fair Trial helped us with the tips below on what to consider when you’re on the other end of a business litigation.
Research, Review the Case
Sometimes, the outcome of any lawsuit is only as good as the effort that went into making sure it’s tackled the way that works for you. Business law in itself can be an extremely tricky subject, which means it’s best you discuss your case with a business lawyer or a legal professional familiar with the nature of your case in order to make sure everything you need to know is in order.
- This means you have to take the time to know just exactly what you’re going up against, and in order to do this, you should be able to review your case. Knowing the variables involved in your specific litigation would allow you to see the various possibilities and outcomes that can come out from these variables.
- Sometimes, the various decisions you have to make throughout the case can be decided based on what you know about the case and what you and your lawyers have decided. This means it’s important you also have good rapport with your legal and financial counsel in order to push forward with a plan that benefits your company.
Make Sure Documentation Is Sound
Chances are, documents regarding your business and its transactions will play a large part of the processes in a business litigation. This is because documents such as quotations, receipts, invoices, agreements, and correspondences may have a major role to play in the circumstances surrounding the litigation. These are also the things your lawyer has to review, and your legal counsel will have to see if this information can be used against you.
- This is important especially for cases involving creditors, the IRS, or acts of mishandling services and products. This is because this data or paper trail is the best way for everyone get a handle on what happened with the situation.
- This means business owners such as ourselves are advised to keep track of the information we possess and make sure we have sound and precise instructions on how to deal with the documentation we have.
Consider The Trial Costs
Aside from the nature of business litigation in itself, it’s important to consider what happens if you proceed with the entire trial. It’s important to remember that the earlier your case is settled, the lesser the costs will be on the legal end. Remember, trials involve a lot of costs such as the court cost itself, time off work, and even your attorney’s fees.
- Aside from the monetary cost, however, it’s also important to consider that a lot of things can happen in a trial that we can’t expect. A key witness may actually turn out to be unreliable, or stories can be inconsistent when examined. If there’s a jury, their decision isn’t something we can control as well.
- If there’s a part of the lawsuit you don’t want to be made public, then it might be a good deal to settle instead of proceeding to take it to court. Evidence that is presented in a court trial can actually be available to the public unless the judge orders so, and the environment of a trial can make your company’s public image suffer if word of the trial got out.
- Even if, for instance, the costs of the trial can be covered easily, getting to solve the case faster can save everyone from spending resources, time, and money.
If your company is being sued, just remember what to consider if you’re going through business litigation. Being in one doesn’t mean it’s the end of the world, but not knowing what to can be costly for your company. Granted, while you may have measures in order to prevent business litigation, it’s still wise to know exactly how to deal with this situation in order to settle these disputes without damaging both parties.
This might seem to be an extra load for you and your legal counsel, but these extra loads may be worth the while if you consider the kind of benefits these may bring to your business. Knowing what to do if you’re going through business litigation can save you valuable time and resources you could use in order to settle the dispute or ensure that you have measures in the future that can help you properly deal with litigation.
Cindy Dowling, part time writer who offers a fresh take on various law topics with the pieces she writes for local firms. Cindy enjoys a good cup of coffee and a good book whenever she has the time.