Did you catch your business partner siphoning off company funds? Perhaps the supplier of indispensable materials routinely violates your business contract. Whatever the case, seeking a remedy through the courts is often the most appropriate response to potentially harmful business disputes.
The problem with litigation is that it is typically much more complicated and time-consuming than most business owners expect. It’s important to view your situation objectively to determine if you can afford a hefty time commitment. However, that is not the only issue that benefits from careful consideration.
Costs vs. rewards
Business-related lawsuits will mean court costs and other legal fees. Before you file your lawsuit documents, determine whether a winning judgment is worth the expenses you will face — unless your primary goal is to set an example for your various associates, that is.
Award collectability
Just because you prevail in your business lawsuit, that does not guarantee you will receive your due rewards. Many individuals and organizations lack the accessible funds to pay court-ordered financial damages. Try looking into the other party’s background to determine if they can pay you. Legal counsel can help with this task.
Other alternatives
You do not necessarily need to initiate a lawsuit to find a solution to your problem. Consider alternative dispute resolution methods such as arbitration and mediation to resolve the matter. Often, these cost less and take less time than litigation. The other party is likely to be more agreeable to a litigation alternative because they will want to reduce their own hardships.
California has some of the most progressive business statutes in the nation. Familiarizing yourself with state laws and procedural requirements before filing your lawsuit is always a good idea.