If your company is undergoing a dispute, it can be very taxing on resources and ultimately can harm your business. It’s natural to want to nip things in the bud right away, but it’s crucial to note that litigation is the most aggressive and high-risk route to take.
This is why it’s essential to try and settle problems through other, more amicable means. However, it’s not always possible to set things straight with mediation and the like. So, the question on your mind is likely: when is the best time for your company to pursue litigation?
When You Have Tried All Other Methods
You don’t really want to wait too long to settle a dispute in case things build up positively for the opposition. That said, it is always advisable to exhaust other options before pursuing this route. The scales can get tipped, and things can get messy when the court gets involved, so you should try to aim for resolution first.
If it isn’t possible to come to an agreement that benefits you, then it may be time to proceed with litigation.
If You Can Accept the Publicization of the Dispute
Litigation can also be a very controversial and public affair, especially if the dispute is with a large company and you’re a smaller one. The Detroit Free Press features a telling example of the court, where a Muslim couple filed a lawsuit against KFC for putting bacon on their chicken sandwiches.
You could end up on the receiving end of a lot of public discourse and possibly, ridicule. So, you need to consider whether your business will be negatively affected by the public nature of litigation. If you can, it’s always best to avoid making a scene and take a private route to resolve disputes.
When Your Case is Strong
Litigation can be costly, and in many cases, it can just not be worth it. You have to consult with your attorney and ensure that your case is strong enough to win. Many lawsuits are frivolous and do not have a strong foundation.
You don’t want to get sanctions imposed on you, and you want to make sure that your case is worth pursuing because it will inevitably take time and resources. It’s also best to consider what possible upper hand the opposition may get so that you can prepare accordingly should they instigate litigation.
If the Cost Outweighs the Benefit
There’s no point in pursuing a case that doesn’t make sense financially. It can be a burden to get the right legal team and pursue such a case. You still have to run your company, so you want to make sure that you are not shooting yourself in the foot by following through with a frivolous lawsuit.
So, don’t get into something you can’t financially pay off. It’s not worth it in the long run. You should also check to see if the opposition even has the means should you try to collect judgment.
Conclusion
Litigation can be challenging and costly, so you need to consider all of these factors before jumping on it. Make sure you consult a reliable legal team and thoroughly consider your options.
McCallum, Hoaglund & McCallum, LLP bring more than 75 years of experience to the practice of law. Reach out for legal assistance if you are considering litigation in Birmingham, AL.
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