When to Bring a Lawsuit - You Think You Have a Case, But Should You Sue?
It's a simple fact of life that disputes and litigation are a part of doing business. This fact is true whether it's from the defensive or offensive perspective. The most important thing to remember as a business owner is to approach a dispute and a lawsuit the same way you would approach your operations and human resources.
The following are recommended steps that a business owner should ideally take when deciding whether or not to pursue litigation in the event they feel any part of a contract has been violated.
When the terms of a contract are unfulfilled by one or more parties a contract is said to be "breached" or the party is said to be in "non performance". Unless both parties have agreed to changes in the terms of the contract or the actions of one party have implicitly been accepted by the action or non-action of the other party all terms of a contract must be honored. Otherwise, a contract breach has occurred and a breach of contract lawyer should be called in to review situation.
As a business owner the first step is to seek legal counsel before immediately pursuing litigation, so s/he is aware of all stipulations of the agreed upon contract. Some contracts might make it more of a hassle to pursue litigation, especially if you own a small business and are in contract with a larger business who can afford to drag out the litigation process.
From the defense side, the decision whether or not to go into litigation has a different angle. If the company is large and can afford it, it may put the plaintiff through the paces because the company can accrue interest on investments it has already made as long as it keeps that money in its hands. Other large companies may go through litigation to avoid being seen as a mark. Even if the plaintiff's case is strong, large companies might say they view the claim as not as strong as others they've dealt with in the past just so other possible plaintiffs know the company will go as far as possible before paying out.
Whether you're playing for the offense or defense team in the case of a dispute and litigation, it is important to keep in mind the terms of your contract, and evaluate whether litigation is really worth it to you and your company.
Frederick Gaston
President of Gaston & Gaston
Author of The Naked Contract
http://www.gastonandgaston.com/
The following are recommended steps that a business owner should ideally take when deciding whether or not to pursue litigation in the event they feel any part of a contract has been violated.
When the terms of a contract are unfulfilled by one or more parties a contract is said to be "breached" or the party is said to be in "non performance". Unless both parties have agreed to changes in the terms of the contract or the actions of one party have implicitly been accepted by the action or non-action of the other party all terms of a contract must be honored. Otherwise, a contract breach has occurred and a breach of contract lawyer should be called in to review situation.
As a business owner the first step is to seek legal counsel before immediately pursuing litigation, so s/he is aware of all stipulations of the agreed upon contract. Some contracts might make it more of a hassle to pursue litigation, especially if you own a small business and are in contract with a larger business who can afford to drag out the litigation process.
From the defense side, the decision whether or not to go into litigation has a different angle. If the company is large and can afford it, it may put the plaintiff through the paces because the company can accrue interest on investments it has already made as long as it keeps that money in its hands. Other large companies may go through litigation to avoid being seen as a mark. Even if the plaintiff's case is strong, large companies might say they view the claim as not as strong as others they've dealt with in the past just so other possible plaintiffs know the company will go as far as possible before paying out.
Whether you're playing for the offense or defense team in the case of a dispute and litigation, it is important to keep in mind the terms of your contract, and evaluate whether litigation is really worth it to you and your company.
Frederick Gaston
President of Gaston & Gaston
Author of The Naked Contract
http://www.gastonandgaston.com/
0 Response to "When to Bring a Lawsuit - You Think You Have a Case, But Should You Sue?"
Post a Comment