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Protecting against a business lawsuit

On Behalf of | Nov 17, 2014 | Business Litigation |

It is possible that an Ohio business owner will be the subject of a lawsuit. However, there are steps that a business can take to protect itself from unnecessary litigation. The first step is to acknowledge the fact that a lawsuit could occur at any time.

It can also be better for a business to spend more on legal fees ahead of time as opposed to spending more to defend against a lawsuit. To reduce the odds that a lawsuit occurs, it may be beneficial that an attorney reviews all agreements before they go into effect. This makes it less likely that there are loopholes or other issues that lead to the parties to that agreement finding themselves in court. It may also ensure that all agreements are put into writing before they are executed.

Any agreement between two or more parties should specify how disputes arising from that agreement are resolved. In some cases, it may be best to compromise in a dispute even if the customer or client is in the wrong. This is because it may be easier and cheaper to come to a compromise, and some commenters suggest that litigation might occur because of a perceived slight or apparent unprofessional behavior.

If a company finds itself being sued by an outside party, it may be worthwhile to talk to a business law attorney. In addition to clearing the business owner’s name, it may be possible to purse a counteraction against that party. While in court or during a mediation session, it may be possible to introduce evidence such as signed contracts or witness testimony to help resolve contract disputes or other cases in a manner favorable to the business owner.

Source: Microsoft Business, “7 ways to protect your business from a lawsuit”, Jeff Wuorio, November 14, 2014


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