A business lawsuit is usually conducted in public. In fact, many lawsuits end up in the newspapers or blazoned across online news sites. But what the public sees is nothing compared to the collateral damage of a business lawsuit.
Damage to Your Business
As a lawsuit progresses, you and your staff may be pulled away from business-related tasks to gather evidence, meet with lawyers, and attend depositions. Business lawsuits give you less time for business.
High litigation costs also affect your company. Your cash reserves may become depleted, leaving you less money for expansion and business development. As your company’s profits decrease, you likely will see a corresponding decrease in your income.
In addition to legal fees, business insurance premiums may rise, cutting into profits or funds earmarked for expansion.
The Effect on Your Family
Business owners sometimes face tough decisions about how they spend their time. Time spent on business litigation means less time to handle routine business tasks. This, in turn, can lead to less time at home with your family.
The stress and lost time can strain family relationships to the edge. In addition, if your personal income has taken a hit, you may have less money for family expenses. Private schools and vacations could become a thing of the past.
The Collateral Effect on You
Of course, the collateral damage of a business lawsuit is also going to affect you as the business owner. It’s not easy to watch the family you love and the business you built collapse under the weight of business litigation.
You may experience fear and anger, which leads to behavior that upsets family and staff.
Stress and strained relationships could also cause health problems. Worrying about the future and your company’s survival all take a toll. You may imagine that the future holds bankruptcy, the loss of your business, and the loss of personal property.
Mitigating the Damage of a Business Lawsuit
Your first steps may begin even before the lawsuit is filed. Have corporate counsel or your business attorney:
- Draft and review all contracts,
- Review your policies for noncompliance with state and federal laws, and
- Evaluate all legal disagreements looking for options other than filing a business lawsuit.
If a business lawsuit has already been filed against your company, contact your corporate counsel or business attorney immediately.
Consider the Collateral Damage of a Business Lawsuit
The facts of different cases lead to different solutions. In some situations, business owners may find that a business lawsuit is well worth the collateral damage. Others may be more interested in settling quickly, then putting preventative measures in place.
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 tm. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. we represent clients throughout South Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, and surrounding communities.