To enforce or defend a certain legal right, one party may be sued. This procedure is known as litigation. The circumstances surrounding litigation frequently depend on the logic behind the claim and the complexity of the specifics, but business litigation can frequently become time-consuming, expensive, and difficult.
While sometimes necessary, litigation can have many drawbacks as well as cause an unwanted distraction for a business. Most people would likely agree that it is best to avoid litigation wherever possible, but that’s often easier said than done.
How to Avoid Litigation
Here are five steps to take when trying to avoid litigation.
#1 Seek the Proper Legal Guidance
Determine the relevant legal issues first. Then, choose an attorney who has the appropriate experience, is familiar with your circumstances, industry, and type of business and/or situation. An experienced lawyer can provide essential insights into how to handle the issue while also assisting you with planning and preparation.
#2 Avoid Signing Anything You Have Not Read
This kind of advice has probably been given to you before, but it is worth repeating, especially in business. The general rule is that paying an attorney on the front end to help you decipher documents will generally be less expensive than paying an attorney after things have gone awry because you failed to read all the terms.
Consider hiring an attorney to assist you with all important contracts before you agree to anything verbally or in writing.
#3 Confirm Agreements in Writing
A written agreement should specify the conditions of any business relationship, including what happens at its termination. This rule applies to all contracts with clients, suppliers, shareholders, business partners, and employees. Any changes to the original agreement should also be documented as quickly as possible.
Contacts must be intelligible and unambiguous in order to be properly interpreted. It is worthwhile to take the time to carefully draft agreements in order to minimize ambiguity and the danger of litigation that comes along with it.
#4 Abide by All Agreements
It may seem redundant, but it is common for clients to make commitments, sign contracts, and after days or weeks of detailed negotiations and the passing of time, disregard the provisions agreed upon. This often happens not out of malice, but a simple habit of returning to normal industry practices because new terms have not been highlighted in highly visible areas.
It’s crucial to read and abide by the conditions of any contracts you sign. While those contractual procedures are still fresh in your mind, prepare contract summaries or lists of requirements. This simple step can help you avoid the challenge of litigation.
#5 Be Prepared to Compromise
Finally, in order to reach a settlement and prevent litigation, you should be willing to listen and perhaps make concessions or compromises.
If a mistake has occurred, or something doesn’t go as planned, or perhaps you receive a complaint, don’t let it brew. Address any potential issues as soon as they have been identified.
Train employees to identify conflicts, discuss and/or resolve problems swiftly, and encourage communication of concerns. In these actions, you may prevent expensive lawsuits or grievances that can result by giving employees a reporting system, retaining legal counsel, and handling each issue as it arises.
Consult with Our Experienced Team
If you need assistance with a situation that may lead to litigation or have questions about any potential legal matter to protect you or your business from litigation, please contact Apfelbaum Law for a consultation.
