Skip to main content

6 Ways to Prepare for a Business Lawsuit




Legal disputes are very unpleasant things. And though often not quite as personal as legal disputes between family members— business litigation can still be just as nasty.

A legal business dispute could be with a business partner, a vendor, a client or customer, or any other entity or individual your company has shared a professional agreement with.

And even though the conflict may not have escalated between you and the other party to the point of a formal complaint, or a lawsuit (yet), there are still critical things you need to know before moving forward. Because the tense period of time leading up to a potential business lawsuit, is the most crucial, and depending on how you handle it, can make or break the successful outcome of the dispute.

Here are 6 tips you need to know before you or your company gets into a business lawsuit:

1. Limit your written communication with the other party.

This can be a challenge because the time leading up to a potential lawsuit is the period of time in which parties often try to convey their issues with one another and attempt to amicably work things out. However, what you need to know is that lawsuits always involve discovery and the production of documents. Anything you put in writing, whether its a text or an e-mail, can be used in a trial against you.


2. Limit verbal communications (even internally.)

Just like with written communication, the parties are also able to “discover” the content of verbal communications. It’s important to limit verbal communication both with your potential legal adversary and any internal verbal communications with your own employees. The parties are entitled to take depositions of witnesses, including said employees.

3. Don’t admit to any level of fault

In an effort to try to smooth out the legal dispute, parties sometimes can admit some level of fault. This “mea culpa” will absolutely be used against you in future business litigation. In many cases it can be your Achilles heel in the courtroom— so it should be avoided if possible.

4. No trash talking or aggressive statements

Do not make aggressive statements against the party with whom you are having the legal dispute. As stressful as the conflict may become, it is crucial to keep the dialogue as civil as can be.

5. Try to lower the temperature.

In order to try to avoid a dispute and come to some type of workable arrangement, it is best to take a step back. It’s far more agreeable to work out a dispute civilly outside the courtroom than spend money on attorneys litigating an issue.


6.  Contact your lawyer.

This is the most crucial bit of advice you need to know before getting into a corporate lawsuit, (or any type of lawsuit for that matter.) It’s never too soon to reach out to your lawyer when you think that a business dispute is beginning.

This article is intended for general information only, it is not intended to provide specific legal advice or recommendations for an individual case scenario.

 —

Ramey & Flock is one of East Texas’ most storied and trusted law firms. We represent individuals, businesses and corporations in transactions and litigation, including labor and employment, intellectual property, oil and gas, and all manner of commercial litigation. We also offer trial support and consultation services. If you require legal services, contact us today.



Comments

Post a Comment

Popular posts from this blog

Probate Dispute News: Aretha Franklin’s Holographic Will, by Steve Spitzer

Aretha Franklin’s legendary singing career spanned five-plus decades. The “Queen of Soul” made the most appearances on the Billboard charts of any female performer ever. She died from pancreatic cancer in August of 2018 at age 76.   1. Probate Case   It was initially thought that Franklin died without a will. A niece, Sabrina Owens, was appointed as the administrator of the estate, which is pending in a Detroit suburb. Earlier this month, Owens was searching Franklin’s home and discovered three handwritten wills.   Two wills from 2010 were found inside a locked cabinet. One from 2014 was found in a spiral bound notebook under the cushions of a couch. The wills are difficult to read, are disorganized and look like rough drafts. Words are crossed out and are written in the margins. The primary beneficiaries are Franklin’s four sons.   2. Disputed Issues   The four sons have been unable to reach an agreement about the validity of the wills. Owens has filed a pe
Post a Comment
Read more

Things to Know Before Hiring an Attorney

With so many attorneys out there, selecting the right one can feel overwhelming. If you select the wrong lawyer for your case the results can be utterly detrimental. So it’s important to do your homework before finally settling on an attorney.   Here are some important questions to ask before agreeing to hire any lawyer: Does the lawyer have experience in the type of law your case is in? Almost every lawyer has his or her area(s) of specialty. An attorney with decades of business litigation experience is the wrong person to hire for your DUI case. You will want to make sure you find a lawyer who understands your case, your needs as a client and has expertise in the legal matter you’re dealing with. Who is the lawyer’s typical client? This is something important to consider. Let’s say you are an individual with a particular legal problem, but the attorney you're meeting with represents only corporations, this will not be the attorney best suited for you and your
Post a Comment
Read more

New Texas Power of Attorney Act

Texas recently adopted much of the Uniform Power of Attorney Act, resulting in a significant overhaul of the prior Texas power of attorney statutes. A few of the more significant changes are: Standing to Sue for POA Abuse: As discussed in the October 2016 edition of this newsletter, standing to sue a fiduciary for misuse of a power of attorney was previously limited. The new act considerably broadens the persons who have standing to sue. Increasing POA Acceptance: POAs are often ineffective due to the reluctance of third parties to accept and rely on them. The new act requires third parties to provide a specific, written reason for the refusal to accept the POA, and creates a limited right to seek court intervention to force the acceptance of a POA. Estate Planning Powers: If desired by the principal creating the POA, “hot powers” can be included that allow the agent holding the POA to engage in estate planning activity for the principal such as creating trusts, making
Post a Comment
Read more