Disclaimer: The information presented below is meant to provide you with tips on how you can prevent lawsuits from being filed against your business. It shouldn’t be misconstrued as legal advice. To know more about how you can avoid business litigation right from the get-go, you would have to consult a licensed attorney. Who can walk you through the necessary preventive measures. That you can place as a shield against any lawsuits that might come your way?

The mere fact that you’ve managed to start your own business should be a cause of celebration in itself. Not everyone has the fortitude to get out of their comfortable jobs and become their own boss. However, there’s no reason to celebrate at all if you receive a lawsuit from someone who has filed against your business. As you wouldn’t want that scenario to become real on your end anytime soon. Presented below are some tips that you could use to prevent business litigation from happening to you.

Some Tips on How You Can Prevent Business Litigation.

Emotions can run high once you and the one who lodged a complaint against your business. As you face off in a legal battle. Which can result in a decision favouring the latter. Potentially ruining your reputation for good. Even if you win against the complainant. Defending your business from a lawsuit filed against it costs time. As well as money and resources that you could’ve used for more important areas instead.

Key Tips to Prevent Litigation in your Business | US Attorney | Elle Blonde Luxury Lifestyle Destination Blog

Thus, every attorney you’d speak to would offer you and all other business owners this one piece of advice. You shouldn’t allow any situation that can become a reason for someone to file a lawsuit against it to ever happen. So that you can focus on the more important aspects of your business other than having

 to take care of legal matters. Here are some tips on how you can avoid having to face business litigation:

Set every business agreement in writing and have a lawyer go over them.

While verbal agreements and a simple handshake are nice. They usually don’t hold any water in court if ever you find yourself defending your business from a lawsuit filed against it;

  • On the other hand. A contract set in writing is handier for both you and any other parties involved as you can all review each and every word in it.
  • To make a contract legally binding though, you would have to consult an attorney. Who can further pore over the details of one that you’ve initially drafted.
  • Your attorney can make you add or remove certain items from the initial draft of your contract so that it would be in favour of everyone involved in it.

Stay updated with any legislation changes concerning businesses that can affect yours.

What may be legal at first when you started your own business can turn out to be against the law. If certain revisions were made to it that can leave a huge impact on your business as well as that of your competitors.

  • Regularly reading the news. As well as industry-specific articles. These can help you keep abreast of any legal issues. Which you can use to prevent from ever happening to your business.
  • If you’re having trouble understanding some updates. That have been made to specific laws that concern your business, your attorney can explain them to you more clearly. So that you don’t have to wrap your head around legal jargon too much.

More business advice you might be interested in:
There are Many Ways to Finance Your Business
3 Habits of Successful Entrepreneurs
How to work smarter, not harder this year

Find ways to settle out of court.

Defending yourself in court as you undergo a lengthy and expensive trial after someone had filed a lawsuit against your business opens you up to unwanted publicity. If there are certain aspects of the dispute between you and the complainant that you’d rather keep behind closed doors. Mainly for privacy and security reasons, you can arrange for the both of you to have an out of court settlement instead.

  • It’s up to you and the complainant how you want to settle your dispute. There are three out of court settlement options for you to choose from: face to face negotiation, mediation, or arbitration.
  • In a face to face negotiation. You and the complainant have to meet in person and talk about your differences until both of you can come up with solutions without the need of another person meddling with your dispute.
  • On the other hand. Mediation and arbitration require the presence of a third party who would try to make both you and the complainant come to terms with each other and reach an agreement.
  • The main difference between mediation and arbitration though is that a mediator isn’t allowed to pass judgment. They can only serve as a referee of sorts. While an arbiter can decide on a solution in case you and the complainant hadn’t come up with one on your own.

Running your own business.

Running your own business isn’t all rewards all the time. There would always be some days that your business isn’t making as much profit as you would’ve wanted it to make. That’s nothing but a mere scratch though compared to waking up one day and finding out that someone had filed a lawsuit against your business. As you wouldn’t want your daily business routine to be completely disrupted by some lawsuit, you should start reading the above-listed tips on how to prevent business litigation from occurring on your end. Besides, prevention is always better than cure. As the saying goes, and it couldn’t be any truer than in your business endeavour.

Cindy Dowling

Key Tips to Prevent Litigation in your Business | US Attorney | Elle Blonde Luxury Lifestyle Destination BlogCindy Dowling, part-time writer. Who offers a fresh take on various law topics with the pieces she writes for local firms. Cindy enjoys a good cup of coffee and a good book whenever she has the time.

Disclaimer: This is a paid for placement. Read more about disclosure here.

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  1. It was helpful when this article advised that one should get write every business agreement out and have a lawyer look over them, as it will make the contracts binding. My friend is actually wanting to set up his own business, so learning these tips could really help him. Do you have any tips for finding a great litigation attorney to help him out?


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