Most companies make a significant decision when deciding whether to go to court to resolve a disagreement. There are several alternatives for resolving legal disputes, such as mediation or arbitration, and litigation is often the most active and risky choice. Especially commercial litigation.
However, it may be the only way to get your desired conclusion in some cases. So, how can you decide if a lawsuit is the best way to resolve your complaint?
This article discussed five indicators that your organization should consider in a case to determine its disagreement.
1) Price in Your Favor:
Every business owner should be well-versed in cost/benefit analysis when assessing the prospective benefits of performing a specific action against the potential or known drawbacks of taking that action.
As a business owner, you most certainly do cost evaluations in your day-to-day operations, such as selecting whether to invest in facility upgrades or lay off personnel.
You should also undertake similar cost/benefit evaluations if you consider pursuing a disagreement. Is what you stand to gain through a lawsuit worth the cost of obtaining that gain? If not, like in a dispute over a bit of quantity of money, then litigation may not be worth the trouble.
2) You have a compelling case.
It will help if you are convinced that you have a robust and unambiguous case against the opposing party before commencing a lawsuit. Is it possible to successfully prove the case in court?
An expert business attorney can examine the facts and advise you on your prospects of success. If you do not have a solid chance, you may want to look at other options.
3) Alternative approaches exhausted
After all other conflict settlement methods have been exhausted, companies should generally consider litigation.
If settlement discussions have failed, and mediation and arbitration are either not practicable or unable, it may be time to fight the issue.
4) You are unconcerned about the dispute’s specifics becoming public.
It is critical to remember that disputed judicial proceedings are public records.
Suppose the nature of your dispute is sensitive, and you are afraid that you may be obliged to divulge material that you do not want to become public knowledge due to the proceedings.
In that case, this may play a significant role in your cost/benefit analysis. If you wish to keep the nature and specifics of the disagreement confidential, mediation or arbitration may be a better option for you.
5) You will be able to collect on a possible judgment.
You may have a strong case that you are confident will win, but would the award be worthwhile if the defendant has no assets to collect?
Litigation is only valuable if you know the other party has the investments necessary to collect the judgment if you win.
The decision to go to court in a disagreement is never to take lightly. Always seek the advice of an experienced attorney when deciding on the best course of action for your organization.
Conflicts can arise from various causes, including rivals, regulators, suppliers, debtors, or clients. As an area characterized by its participants, commercial litigation encompasses many legal proceedings and conflicts.