‘The inevitable impact legal processes put on business entities’
At some point or the other, all businesses have to face a legal dispute. Business litigation takes many structures that include contract disputes, misrepresentation, and matters of employment. All have the capacity to bring about undesirable consequences for both small and large businesses.
Preferably, business disputes can be sorted out without adopting litigation through direct negotiations, arbitration or mediation that are commonly way faster, less expensive, and more private than the litigation process. However, sometimes litigation is inevitable. When parties are relentless to consider other options or have found substitutes for litigation as unsuccessful then litigation must be considered.
In any business issue, a company must always consider the effect a dispute will have on its bottom line. If a company is confronting a dispute, it must count the costs involved and decide whether it is a battle worth fighting. Every aspect of dispute resolution has a cost associated with it. Choosing the right way can either make or break the business.
If a company is considering raising an issue or is defending itself from a probable dispute, the assistance of a business attorney plays the most important role. A lawyer who has an in-depth comprehension of corporate law and civil litigation can help in deciding whether to pursue one of the following as a method to solve the issue:
- Mediation
- Arbitration
- Litigation
- Sorting the issue by backing off from the dispute
No matter in which way a corporate dispute is resolved it affects the company where it can hurt the most i.e. its finance. A successful resolution sometimes does not necessarily mean winning, what most people understand the meaning of it, but can mean perpetuating the black in your company ledger.
Most common legal issues
- Immigration Audits
- Disappointed Employees
- Discrimination/Harassment Cases
- Immigration Audits
- Copyright and Patent problems
Drawbacks of litigation
Lawsuits can be expensive and have the ability to drive a company into bankruptcy. There is not only the mental anguish associated with the dispute but many costs are involved too. Regrettably, litigation has major drawbacks for many business owners which includes:
- Relationships
- The bottom line
- Litigation costs – e.g. court fees, travel, depositions, copies, mail
- Time spent out of the business
- Attorney fees
- Award to the succeeding party
- Penalties and fines suffered as an outcome of a lost lawsuit