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.
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