To Litigate, or Not to Litigate? 5 Things Business Owners Should Consider First

As a business owner, it is not a question of if someone will violate the legal rights of your business, but when. This is just one of the potential challenges that business owners must face. Many people when put in this situation immediately jump to the option of suing the other party. While this is certainly an option that needs to be on the table, it is always important to think everything through rationally, and talk with an attorney, before any decisions about litigation are made.

When deciding whether or not litigation is the right course of action for your business, it is important to consider some important questions. Ask yourself these five things as a good exercise before making any final decisions.

Is There a Better Alternative?

Litigation should be looked at as a last resort (and this is coming from an attorney!). While it is sometimes necessary, and it is an important tool to have available, there are often better ways to solve a conflict. In most cases, by the time litigation is being considered, the parties involved already have elevated emotions. Consider involving a third-party mediator to help facilitate further discussion. While it might not sound like it, compromise may be the best way to get through a conflict so you can put it behind you and move forward with your business.

What Will Customers Think?

With very few exceptions, lawsuits are a matter of public record. This means your customers (or potentially worse, your competitors) will be able to see all the evidence that is presented in a case, and everything that was said. Consider how this information could be used against you, or how customers might perceive it down the road. In some cases, this is not a big deal at all, but in others, it could have devastating consequences for years to come. Really thinking this through is critical.

Could Your Time Be Better Spent on Other Things?

A good business attorney will handle most steps in litigation, but there is no way around the fact that a business owner will need to dedicate time to a lawsuit. The hours you have to spend speaking with an attorney, testifying in court, and doing other tasks, could be spent focusing on other business needs.

Can You Win the Case?

This is a big one. Looking at your case objectively and determining what your chances of actually winning really are is very important. Even if you are 100% sure you are right, that doesn’t mean you will win in the court of law. You need to be able to prove your position, which is often harder than it sounds. Having an outside party, such as an attorney, look at the facts to determine your chances is a great way to decide whether or not to move forward with litigation.

Is the Chance of Winning Worth the Cost of Getting There?

If you believe that you have a good chance of winning, the next question to ask is whether it is worth the costs. Litigation can be quite expensive when you factor in attorney costs, court fees, time away from the business, reputational issues, and more. In some cases, even if you are able to win everything you wanted, it still isn’t worth it to go through the process.

Talk with an Attorney Today

If you think that litigation might be the right choice, contact Reyes Law Group to go over your options. Litigation is essential in many cases, and having an attorney available to talk about all your options and help you throughout the process will help ensure you do what is best for your business.

The following two tabs change content below.

Reyes Law Group

Reyes Law Group represents clients in a multi-disciplinary legal practice involving real estate transactions and litigation with a “footprint” that covers the State of Florida. Over the firm’s first 10 years, Reyes Law Group has closed over $100M in commercial closings, representing buyers and sellers in contract negotiations, due diligence, and the related title review and policy issuance related to closings. In litigation, the firm has commercial litigation experience focused on prosecuting or defending claims such as breach of contracts, partition actions, trade secret violations, and breach of non-competes. However, our firm’s MAIN FOCUS is assisting asset and loan portfolio managers, investors and private lenders with a “ 4-PILLAR APPROACH” to the legal challenges they face with non-performing assets: 1) LOAN WORKOUTS; 2) COMMERCIAL FORECLOSURES (across the State of Florida); 3) COMMERCIAL EVICTIONS; and 4) REO COMMERCIAL CLOSINGS.30+ years’ legal experience means - WE CAN HELP!

Latest posts by Reyes Law Group (see all)

%d bloggers like this: