Running a business is a challenging enough endeavour, from having a direct hand in sustainable and efficient growth to reading and responding to market volatility effectively. But even taking into account the various economic fluctuations that can serve as roadblocks to business progression, the road to long-term success is not a smooth one.
Disputes are an unavoidable part of growing a business. Whether unamicable separation of founding partners or collaborating parties, allegations of impropriety by prior customers or other forms of interpersonal disagreement, your business is highly likely to encounter some difficult conversations regarding conduct and liability.
While the temptation can be to handle these claims or disputes directly and privately, whether a plaintiff or defendant, this can actually work against your short- and long-term ambitions and create further issues down the line.
Litigating the process – that is, putting the dispute to a court of law, allowing a judge to evaluate all evidence objectively and receiving an independent judgement on resolution – is arguably the better option. If you are anticipating a dispute with a former supplier, partner or customer, approaching litigation lawyers to manage the dispute properly can be crucial to ensuring said dispute has minimal impact on your business. But why is this?
Cooperation
First and foremost, litigation breeds cooperation. For example, your business may have invested in another venture with a tacit agreement on investment returns after a certain period. This new business may sever communication and refuse to engage with your requests for compensation. Litigation forces the business’ hand; a letter before the claim gives notice of action, after which the court can summon the company to court proceedings.
Transparency
The litigation process is also necessarily transparent, as evidence and court documents are recorded immutably. The court’s record is a public one, allowing you as a business to legitimise any claims surrounding your candour or contributions to the process.
This can also work in your favour for new civil disputes, where court records from previous disputes can be admissible for your own arguments and evidence.
Justice
Seeking litigation for civil disputes means you receive just treatment and judgement from the court. Not only this, but the just nature of the process enables you to appeal any decisions you believe to be incorrect or ill-founded. This can be a curse just as much as it can be a blessing though, as the same opportunity is afforded to the other party if you bring a case against someone else.
Cost
Lastly, litigation is usually painted as a costly endeavour, between legal fees and potential monetary judgements. But litigation can in fact be the less costly option, especially for small claims and minor disputes. Rather than spending time and energy achieving a result through alternative means of dispute resolution, which can often end up in court anyway, the process is streamlined and the costs of legal representation are easily calculated.
