Lawsuits are often an unfortunate reality for your business. Many businesses will face some type of litigation during their operations, including small and medium-sized businesses. If you are unprepared, this can be exceptionally costly and you might be unable to protect your rights. On the other hand, going in prepared puts you in the best position to limit your liability and save on unnecessary costs.

At the Saxton Law Firm, our skilled business litigation attorneys can represent you when you need it most. A Kansas City, MO small business litigation lawyer can analyze your case and help you prepare for litigation.

business litigation

What Is Business Litigation?

The phrase “business litigation” is often enough to give any business owner a sense of dread. Business litigation might include minor legal disputes in small claims court to major litigation that spans years. In either case, you want to be prepared in advance rather than reacting in the moment.

Examples of business litigation you might face include, but are not limited to:

  • Insurance disputes after a claim denial
  • Company sales or acquisitions issues
  • Legal disputes with a larger company, such as a supplier
  • Government investigations after allegations of non-compliance
  • Employment-related disputes

Whether you currently face litigation, or just want to be prepared for the future, our small business attorneys understand how to get you prepared and protect your business.

5 Tips to Prepare for Business Litigation

These tips can help you get ready for business litigation and limit your potential liability.

  1. Document Everything: Written records are essential to the outcome of most litigation. You should regularly keep records of important contracts, communications, insurance documents, or even oral agreements you make in the course of your business. The winning party in the lawsuit is often the one with the most evidence that their side of the story was correct. Companies that fail to keep accurate records often learn too late how important this step really is.
  2. Never Admit Fault: Do not allow yourself or your representatives to admit fault. Never admit to breaking a law or violating a business practice. Records of these admissions could be used against you. Often, owners feel admitting fault and apologizing will help the situation, but later learn they were not really responsible for the harm caused. Always speak to an attorney before making any kind of admission of fault.
  3. Have Business Insurance: Make sure you have business insurance to prepare for unforeseen events. Good business insurance can help cover the costs of litigation, including attorney’s fees and any damages awarded against your company. Insurance can help mitigate the risks of doing business and the risk of future lawsuits.
  4. Regularly Review Contracts: Create policies and procedures that require regular review of your legal agreements. Many lawsuits are easily avoided if you remember important due dates, contract renewal or termination dates, and other key details in your contracts.
  5. Limit Communications With the Opposing Party: Avoid unnecessary communications with the opposing party. These communications could be used against you in court depending on their contents. You may have the best intentions to try to solve the issue before it goes to court, but this can often backfire. Instead, try to resolve the issue with the help of your attorney to protect your company while negotiating a resolution.

The best way to protect your business is to work with an experienced business litigation attorney. Your attorney can help you develop systems to avoid future litigation. Your lawyer can also assist you with pending matters, negotiations, or litigation. 

READ MORE: What Is the Difference Between Civil Litigation and Commercial Litigation?

Get prepared for business litigation ahead of time with the help of a qualified small business litigator. Our team represents small and medium-sized businesses to protect their legal rights. Contact Saxton Law Firm for a FREE case review!