As a business owner, you know it will only take one lawsuit to sink your company. That’s why the news that you may be facing a lawsuit can easily drive you into panic mode.
Take a breath and read more about what you should do now.
What should I do if facing business litigation?
Here are some steps you can take if facing the threat of business litigation:
- Be careful what you say: Careless words could cause problems later. Ensure others in your company are aware of the situation so they avoid exacerbating it. Select one person to deal with all related correspondence (which could be you, as the owner).
- Seek legal help: When your company’s future rests upon a dispute, it is crucial to seek the advice of a business litigation attorney. They can guide you on how best to handle the matter and what steps you can and cannot take now.
- Check your contracts: Many disputes can be solved by reading the fine print in your agreements. There may be rules about settling the dispute inside.
- Preserve evidence: Gather evidence to back up your case. Make sure you do not try to hide evidence, either, no matter how problematic it may seem. A court could hold that against you.
- Inform your insurer: If you lose the case, your insurer will probably have to pay. If you do not inform them in time, they may refuse your claim.
- Avoid a repeat: If a business problem has occurred once, it could happen again unless you make changes. Tighten your contracts if necessary. Provide extra training if needed. Think of a complaint as an opportunity to improve.
Remember to weigh up the long term cost before entering a legal contest. Despite the fact, you may be right, and the client may be wrong, sometimes ceding to them can work out better in the long run. It is far harder to gain a new client than keep a current one happy. There are many ways to settle business disputes before they end up in court.
