Unpacking Civil Litigation for Businesses

Running your own business has a lot of inherent rewards. You can set your own hours, create your own policies, and have tangible proof of all of your hard work. Unfortunately, with all those highs come potential lows. Legal disputes can pop up unexpectedly and pose significant challenges for companies that are not prepared for the inevitable complications. Although it can be stressful, you can get ahead of potential litigation by staying informed on ways to manage disputes and understanding when to settle. 

The Basics of Civil Litigation

Some disputes cannot be resolved by discussion alone, which sometimes leads to the courthouse. It can be a useful tool to get things done, especially for businesses that are facing contract, partnership, or intellectual property disputes. The process can be lengthy and expensive, but in certain situations, the outcome is worth the effort. The end goal of litigation is usually to find retribution or common ground in some way, such as terminating an agreement or recouping financial losses. This can also be done using alternative dispute resolution methods like mediation or arbitration, but it’s important to know when to play each card.

Litigation Process

Whether or not your business should proceed with civil litigation can be determined with the help of your litigation attorney. They can take the facts and evidence within your situation and give you an evaluation. No matter how contentious the situation is, not all disputes will be accepted by the court. An attorney will help you understand your rights and options, and provide guidance on the best course of action. 

Negotiating Table

When two or more parties are in a disagreement, they may not be able to see eye to eye in the heat of the moment. Attorneys can facilitate open communication and put some distance between the parties to start productive negotiations. The majority of civil litigation cases will be resolved through a settlement. This is often the most cost-effective way of resolving a dispute, and often business relationships can be preserved when there is a mutually beneficial agreement.

Knowing When to Say: Enough Is Enough

There are some scenarios where no amount of negotiation will lead to a positive outcome. Sometimes the offending party has attempted to cut all communication in an attempt to evade the consequences of their actions, or all conversations regarding the matter lead nowhere. In rare cases, the other party simply refuses to take accountability or address the situation with the gravity it deserves. In these situations, your attorney will assist in filing a complaint that outlines the facts of the case, legal claims, and damages sought to set things in motion. At this point, the other party will have the opportunity to respond. Although the other party has a limited amount of time to respond, the trial can take months or years before it reaches a final conclusion. For this reason, it should be considered a last resort. 

Disputes Can Have Successful Outcomes

While civil litigation is sometimes necessary, there are ways to create agreements that pave the way for successful dispute resolution. This can come in the form of airtight business agreements and contracts that include clauses that preemptively outline how certain disputes will be resolved. This is often the most cost-effective way to resolve conflict. With clear expectations, both parties will be able to make informed decisions before taking action and potentially resolve disputes without major disruption. 

A business that can withstand disputes must start with a strong foundation. An attorney can provide businesses with legal guidance even before their formation by developing strategies and creating operating agreements that are prepared to face disputes. The team at Albright & Lumpkin, PC is experienced in both civil litigation and business law, making them specially equipped to provide the guidance your business needs. Contact our office today to schedule a consultation.

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