If you are a business owner, at some point in the future you may need to lodge a lawsuit against someone. It may be a supplier for your business, a competitor, one of your employees, an independent contractor you deal with, or even a customer of your business.
It is imperative for all business owners to know and understand the basics when it comes to business litigation, even though you will hire an attorney if you are in this type of situation.
What is Business Litigation?
Business litigation normally occurs when a dispute breaks out in a business or commercial relationship. This can include your company versus another company, a group of people, or even a government entity. The issues are usually very involved ones which are why it will be important for you to have legal representation.
Keep in mind, anything filed in court, including lawsuits, falls under public records which means news sources in anyone else can look these records up which can be damaging for a company and cause public relations issues. Your company’s reputation is the most important asset you have, so you will want to avoid business litigation if at all possible. Handling a dispute effectively from the beginning of it is very important to your company’s bottom line and financial future.
While there are many different types of business litigation and different scenarios in which this type of dispute resolution is necessary, there are two types that are the most common when it comes to legal issues for companies. Business litigation can include a breach of a contract, an investigation into regulatory issues, trademark disputes, fiduciary disputes, insurance disputes, partnership disputes, and even post-closing disputes.
Be Prepared for Business Litigation
As a business owner, you may want to take on a “wait-and-see approach” when a legal dispute arises. Most people and other organizations do not want to confront litigation until they absolutely have to which means after an actual lawsuit is filed. In other words, many companies will base decisions on their fear of litigation or because they’ve been threatened with litigation.
You will want to hire legal representation immediately if a lawsuit is filed against your company or if it’s even threatened to be filed. An attorney with experience in business litigation can provide much-needed advice and support in these types of situations which will help you avoid making hasty decisions. An attorney can also help you identify areas of your business that may be vulnerable to potential business litigation and can provide you with advice and guidelines on ways you can protect your company from business litigation in the future. Basically, it’s better to be safe than sorry when it comes to business litigation.