As a business owner, you most likely have a lot of plans for your company. You always have to be one step ahead, and you need the right kind of moves in order to ensure your survival in an ever-evolving market. Unfortunately, being human, you can’t see all circumstances that are happening around you.
If a business litigation springs from out of nowhere, sometimes you can get caught off guard. Fret not! Here are your legal options when it comes to business litigation.
Business Litigation: The Common Disputes
Numbers from Alix Partners, a business advisory firm, show in 2014 companies in both Europe and the United States experienced increased costs of litigation due to increased litigation activity.
Some of the most common types of disputes U.S. companies were involved in included disputes on insurance, accounting, intellectual property, employment, and contracts. Meanwhile, European companies were mostly involved in disputes concerning securities, antitrust, class action, intellectual property, and contracts as well.
Business Litigation: Legal Options
When you experience litigation, however, it doesn’t necessarily mean you should turn tail and immediately run away. Given that litigation is often one of the many solutions for unsettled disputes, it’s important to understand that both parties will likely have a preferred “objective” in the situation. This can be met in two ways, both of which can have advantages and disadvantages:
Should You Go for a Settlement?
A settlement or an early settlement is a way of resolving disputes without having to go to court for a trial. This means both parties agree that one party will give another a particular sum of money or other forms of payment in exchange for both parties not proceeding with further actions.
- Deciding on a settlement doesn’t automatically guarantee you will get a sizable amount of money you think is “fit” for compensation. Like in other disputes, this will have to be negotiated and properly settled.
- While evidently a bit cheaper than going to trial, there are still a lot of paperwork and costs involved in making sure an early settlement is properly conducted.
- It’s important to remember that chances are filing a settlement will mean you won’t be able to pursue the other party for anything related to the incident you’re creating a settlement for.
Should You Go to Trial?
The other option aside from a settlement is to go to trial, which, in its own way, has its advantages and disadvantages, too. Taking the case to trial means opening the case to a jury or a judge for evaluation. You and your lawyer will have to make a case against the arguments of the other party, and the arbiter, which is the judge or the jury, will decide on a result based on your claims.
Taking the suit to court means subjecting it to vastly unpredictable circumstances. There’s no way to control how a witness’ testimony will appear, or how the judge and/or jury will react to your case.
Trials have a lot of risk involved because not only is there a chance for private information about your dealings to be exposed to the public, but you risk not winning any form of financial compensation at all.
See Both Sides of Litigation
When it comes to business litigation, it’s important to understand that it’s not the end of the world for your company. Look at it from the right perspective, and you might have a great thing to work with to ensure your company’s survival in the long run. If you’re in need of legal assistance on the matter, click here to find out what your options are.