Career Testing
Career Testing
Career Testing
ENTREPRENEURSHIP / MAR. 29, 2015
version 4, draft 4

5 Tips for Dealing with Litigation

iStock
 

As an entrepreneur, being sued can be a very disheartening and stressful experience. This is especially the case when the complaint being made against you is unfair or simply malicious. Though it is very easy to lose your cool when facing a lawsuit, the first thing you need to do is stay calm and collected. To get through the legal process successfully, it is imperative that you approach the lawsuit in a methodical and rational manner.

Here are some of the things you should do when facing litigation:

1. Take immediate action

When facing a law suit, many business owners make the mistake of minimizing its significance. Instead of acting right away, they turn a blind eye and assume the problem will go away by itself. However, failing to take immediate action could have a very detrimental effect on your business. The court is likely to rule in favor of the complainant, which means that you’ll lose the case even if the law suit was not justified.  

2. Get legal counsel

Lawsuits give you a specified time period within which you have to respond. Though this might seem like a long time, it is usually a tight deadline considering the groundwork that needs to be done before going to court. Therefore, the first thing you need to do when facing litigation is to hire the services of an attorney that is qualified in the case involved.

3. Collect information

A qualified attorney will ask you to submit a wide range of documentation and information which is relevant to the lawsuit. This could be anything from contracts, bills and invoices to letters and emails. In addition, you might be required to submit a written statement of your response to the claims of the lawsuit, as well as a list of witnesses with their contact details. Be sure to respond to your attorney’s requests as fast as possible. This will give them sufficient time to prepare a defence.

4. Stay involved

Many business owners make the mistake of detaching themselves from the legal process and leaving everything to the attorney. However, though the attorney will do the donkey work, you will need to remain involved through the whole process. The legal journey could take weeks, months or even years. To enhance your chances of success, make sure you are on top of things all along.  

5. Seek an out of court settlement

At times, lawsuits drag on for months or even years, eventually costing you a lot of money in attorney fees and lost business. If you think the lawsuit you are facing is taking too long to resolve, you could consider the possibility of reaching an out of court settlement with the plaintiff. This will not only save you money, but also the time you would have spent in court. However, this does not mean that you should give in to every demand. Ask your attorney to negotiate an agreement which is mutually beneficial to both parties.

See also: 6 Ways to Avoid Employee Lawsuits  

Have you faced a lawsuit before? How did you deal with it? Let us know in the comments section below.

Get our FREE eBook!
'6 Steps to Landing Your Next Job'
Career Test
Career Test
Career Test

LEAVE A COMMENT

0 comments

 

RELATED ARTICLES

worried woman at desk
ENTREPRENEURSHIP / SEP 10, 2014

One of the main ingredients to a successful entrepreneur is someone who is willing to take risks in order to see great rewards. However, there are specific areas where an...

Marketing Tips for Startups
ENTREPRENEURSHIP / FEB 10, 2015

The Internet is rapidly seeping into all the pores of modern day life and business. A sure indication of this is in the exponential rise in the number of startups. As a...

business partners
ENTREPRENEURSHIP / MAY 04, 2016

As an entrepreneur you’re probably always interested in finding ways to grow your business and increase your profit which is what being an entrepreneur is all about...

5 Fitness Tips for Busy Entrepreneurs
ENTREPRENEURSHIP / FEB 16, 2015

Staying fit is an essential part of the body’s productivity. However, making time to actually stay healthy and work out can be quite problematic, particularly for...

5 Tips for Structuring Links for Maximum SEO Impact
ENTREPRENEURSHIP / OCT 11, 2014

SEO involves looking at practically everything on your website. Even the smallest parts of your strategy can have a big impact on the results you eventually get. One area...

business pitch
ENTREPRENEURSHIP / SEP 11, 2014

Entrepreneurs who seek funding from investors are faced with the daunting task of presenting their business pitches to investors. More often than not, they face a panel...

Get our FREE eBook!
'6 Steps to Landing Your Next Job'
G up arrow