Common Reasons New Businesses Face LitigationLitigation often arises from communication breakdowns between business owners, clients, customers, or vendors. Early recognition and transparent communication about issues can help you prevent these sorts of conflicts from emerging before they escalate. Modifying agreements or renegotiating terms can sometimes resolve disputes before legal action is necessary. Breaches of contract are also common. Frequently, they arise due to poor communication or inadequate record-keeping, which genuinely drives home the importance of maintaining thorough records.
As businesses grow, HR-related claims, such as those from current or former employees, can lead to litigation. Finally, issues around restrictive covenants and non-compete agreements can also cause litigation, especially as the workforce expands.
Costly and time-consuming lawsuits can be a massive burden on your business, so it’s essential to fully understand your obligations under each contract and maintain clear communication with your clients, vendors, and customers. In my experience, roughly 80% of business-related lawsuits stem from contract breaches. As such, reviewing contractual commitments regularly with legal counsel can help preemptively address potential issues. Proactive legal guidance on contractual obligations can also help mitigate risks.
If litigation does arise, contacting your attorney promptly is absolutely critical. Immediate legal assistance positions you for swift responses to not only lawsuits but also legal notices and formal complaints, among other matters.
Craig Donnelly of Donnelly Law LLC has extensive experience guiding businesses through complex legal challenges in Illinois, including litigation. With a deep understanding of common pitfalls like contract breaches and HR-related claims, Craig has helped his clients safeguard their businesses from legal threats over the years. His proactive approach emphasizes clear communication and compliance, helping businesses minimize risks before they escalate.
If you’re concerned about protecting your business from litigation, reach out to Craig today, his strategic advice can make all the difference in securing your company’s future.
Litigation is the process of resolving disputes through the formal court system, usually at the state or local level. Arbitration, on the other hand, is where the parties agree in advance, often within a contract, to avoid traditional courts. Instead, they select a single arbitrator or panel of arbitrators to review the dispute privately. While arbitration is sometimes perceived as more affordable than litigation, this isn’t necessarily always the case. Costs can easily pile up, especially if the arbitration award must be converted into a court judgment to be enforceable. In these circumstances, your case would end up requiring the involvement of the court system anyway.
If your business faces a lawsuit, the first step you need to take is to consult with your attorney immediately. They’ll examine all relevant documents, gather additional records from the court, and schedule a meeting with you to thoroughly discuss the claims, help you understand the issues, and decide on your initial strategy. The key decision you’ll likely discuss includes whether to settle or fight the lawsuit. What you decide to do will shape the legal steps taken next like filing a response or exploring settlement options.
If the goal is settlement, your attorney will try to negotiate terms, often through discussions or meetings with the opposing counsel, aiming for an agreement that meets your objectives. Settlements can provide a predictable outcome and cost control. Taking your case to court means the decision will be left to a judge or jury. While you may enjoy a higher upside should the court or jury rule in your favor, this approach likely involves comprehensive discovery and deposition taking in order to strengthen your defense and protect your business’s interests.
For more information on Business Litigation 101, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (630) 608-2124 today.
Craig Donnelly of Donnelly Law LLC has extensive experience guiding businesses through complex legal challenges in Illinois, including litigation. With a deep understanding of common pitfalls like contract breaches and HR-related claims, Craig has helped his clients safeguard their businesses from legal threats over the years. His proactive approach emphasizes clear communication and compliance, helping businesses minimize risks before they escalate.
If you’re concerned about protecting your business from litigation, reach out to Craig today, his strategic advice can make all the difference in securing your company’s future.