As a business owner, you’ve heard the term “best practices” before. You’ve probably even applied this term to your business dealings. Usually, best practices refer to using the best, most efficient, or most prudent course of action for the situation at hand. When embroiled in business litigation, consider observing the following prudent best practices.
Preserving the Evidence in Business Litigation
Lawsuits require evidence. The plaintiff must use evidence to prove its claim, and the defense will use evidence defending against the lawsuit. Sometimes, evidence comes from your own business records.
The best practice, though, is to refrain from discarding or destroying anything related to the lawsuit. Your business lawyer will tell you what evidence you and your employees should safeguard.
Destroying evidence related to a lawsuit is usually called spoliation of evidence. In some cases, courts penalize parties that failed to protect evidence related to a lawsuit.
Not Ignoring the Lawsuit
As a busy business owner, you might be tempted to put a legal dispute on the back burner. But once you have been sued, you only have a short time to respond to the lawsuit. Ignoring the lawsuit could result in a default judgment, which means the party who sued you basically wins by default.
If someone serves a complaint or petition on you or your business, talk to an attorney immediately. Your business lawyer needs time to assess the case and file your response.
Considering Mediation
Mediation is a form of alternative dispute resolution. It’s often used to settle legal disputes in a most cost-efficient, timely way. In fact, parties can use mediation both before and after a lawsuit is filed. One best practice in business litigation is considering whether to use mediation to save time and money.
Avoid Talking About the Lawsuit
During World War II, the slogan “Loose Lips Sink Ships” was used to encourage people to be careful what they said. The same holds true for business litigation.
Talking about your case increases the risk that confidential information could get into the wrong hands. Discuss business litigation with others on a need-to-know basis.
But Talking to a Business Lawyer About Your Business Litigation Is Critical
Of course, the exception to the “avoid talking about the case” tip involves your attorney. It’s crucial to the success of your case that you discuss the case with your lawyer or corporate counsel as soon as possible. In some cases, you might be able to settle your case quickly or at least be in a good position if your case heads to trial.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.