When it comes to your business, The RAD Firm understands just how much blood, sweat, and tears go into keeping it thriving and moving forward. We also understand that unfortunately business disputes are not always avoidable. In fact, if you transact business long enough then it is nearly inevitable that you will at some point find yourself in a disagreement amongst your business partners or shareholders. For most companies, it is not a question of if you will be sued, but when. It is important you are prepared for what may come in the legal process ahead, which is where The RAD Firm can step in to ensure that your business interests are best protected. Below are some common Do’s and Don’ts that should be considered for litigation success.
- DO start with an open mind, as being collaborative always yields better results: Litigation can be a protracted affair with many unforeseen twists and turns along the way. Therefore, it is important that litigants remain open to alternative dispute resolution tactics as the discovery phase unveils further information and evidence. A well timed settlement offer can often yield a satisfactory result, while greatly reducing additional legal costs associated with lengthy litigation proceedings.
- DON’T waste any time before enlisting the legal representation you need, especially if your business dispute is hostile or complex: Time is of the essence when you are named in a lawsuit. Immediately engaging with a qualified litigation lawyer allows time for you and your attorney to (i) develop an action plan to move forward, (ii) protect your interests by answering the allegations contained in the complaint, and, (iii) if appropriate, file other claims related to the matter against the plaintiff or third parties. Since business representatives are not allowed to advocate on behalf of their registered companies without engaging in the unauthorized practice of law, it is crucial that you seek assistance immediately.
- DO take any lawsuit filed against you seriously: By far one of the biggest mistakes businesses make when they are sued is not taking the complaint seriously or ignoring it altogether. From the moment you are officially “served” with a Complaint, your clock starts running. If time runs out before you file appropriate documents with the Court, you could be in jeopardy of being in default, and a judgment could be rendered against you. If you are served, engage in an action plan immediately.
- DON’T over-communicate with the other party, even if you think just one more conversation will resolve the issue: Litigation disputes are strategic affairs, and it is important that the other side believes that you are resolute in your position and that you are not afraid to tee it up before a judge or jury to protect your rights.
- DO preserve evidence, even if you think it may not be important: Regardless of how helpful or harmful potential evidence and information may be against you, once there is even a possibility that a lawsuit may be filed, you have an obligation to preserve it. Destroying evidence and information could result in further claims against you, or sanctions issued by the Court. Your legal team will collect information on your behalf to strengthen your case.
- DON’T discuss the lawsuit with others without checking with your attorney: In civil litigation, there is a process referred to as “discovery” whereby the opposing party can request potentially relevant documents, evidence, and information from you. While there are some bases when a party can object to these requests, civil litigation encourages the free exchange of information. Accordingly, be advised that your emails and even oral communications can become discoverable. To avoid unnecessary pitfalls, talk to your attorney about how best to communicate (or not communicate) about relevant matters.
- DO start gathering relevant information immediately: Once you have been served, it is important to start gathering information relevant to the allegations in the complaint and any allegations you may have against the plaintiff or relevant third parties. The more work you do to become knowledgeable on the matters at hand, the better off you will be.
- DON’T make any drastic or rash decisions: This is really important. From an outsider’s perspective, your company should be “business as usual.” Do your best to maintain status quo and refrain from harming the company’s reputation. Continue operating, letting your employees and business forge ahead, and don’t let the dispute impact the overall success of the company.
- DO identify your goals: Before moving forward with a dispute, ask yourself what you really want out of it. What do you want to achieve? Maybe you want to sell your shares, recuperate losses, or completely shut down business operations. Identify your ideal end game and write it down. When you’re faced with a big decision during the process, refer back to these original goals, it will help.
- DON’T engage in any action that may be construed as unprofessional: The person or entity that you’re in a dispute with may very well have been a long time business partner, and that’s hard to deal with, and even harder to prevent your emotions from taking hold. Remember, keep it professional and let your experienced litigation attorney do the dirty work when needed. Always keep the best interest of your business in mind. This means analyzing the situation from a rational standpoint and taking the long view when it comes to which course of action most benefits your underlying business.
If you are in need of an experienced commercial litigation attorney to resolve your case as efficiently and effectively as possible, look no further than our resourceful and dedicated legal team at The RAD Firm.