How to Prevent a Costly Business Lawsuit

Your business getting slapping with a lawsuit is a sole proprietor’s nightmare. Someone is pursuing your company for damages; money that could potentially come out of your own personal assets should the suit be successful. Defending the legal action against you can be just as expensive as it is a challenge. If you can’t avoid the suit, the best strategy is to have the most experienced commercial litigation lawyers working on your behalf. However, following certain steps, like the ones we outline here, can help your company avoid the lawsuit and the cost of an attorney’s retainer.

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Create Documentation for all Employment Events

One of the most commons reasons for a business being sued is an employment matter — be it unfair termination, discrimination, or other wage claim. The most effective means of combating such a claim is to document everything that happens over the course of every employee’s time working for you. That includes disciplinary actions, salary, their original application and performance reviews. The more info you have available, the less likely you can create a confusing environment that might lead an employee to take their rights have been violated in some way.

Don’t Steal from other Companies

Intellectual property (IP) laws are no joke. Don’t think you can imitate another business by using their logos or color schemes to create the hint of an association between their company and yours. Profiting because of that action is illegal and may entitle the other business to sue you for profits you received from violating their IP. Don’t believe you can skirt the law because the business serving as your company’s inspiration is located in another part of country. In our digital age, the distance from everything is in direct correlation to a cell phone camera and a reliable Internet connection.

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Clear Up Your Business Misunderstandings

Clarity in communication is at the heart of every successful business endeavor. In many instances, settling a disagreement between your company and another party is a simple matter of picking up the phone and clearing the air. Make it a point to hash differences early on before they balloon into full-on resentment and anger. Listen to the other party’s concerns and do your best to address them. You may just prevent a costly legal battle before it ever starts because you made the proactive gesture to let them know you care what they think and what’s important to them.

Lost Art of the Employee Handbook

Workers who don’t know their boundaries or what’s expected of them don’t operate efficiently and may be more likely to cause disciplinary issues. Disgruntled workers can turn into plaintiffs in commercial litigation actions against your firm if you don’t spell out the rules. Create an employee handbook. Have every employee read the document and sign a form, which you keep, stating that they’ve read and understood it. New or old employees — doesn’t matter.

If you’re in the midst of a business litigation matter, you need the services of our legal team to navigate the complexities of commercial law. Call our lawyers today for an in-depth consultation about the problems you’re facing.