Smart Strategies For High-Stakes Situations

When a lawsuit targets your business

On Behalf of | Mar 2, 2023 | business litigation

If you are in business, you are probably used to competition. Disagreements naturally come with the territory.

Sometimes, those disagreements devolve into legal disputes. In fact, this is not uncommon.

Why people sue businesses

People bring lawsuits against businesses for various reasons. At face value, these lawsuits might have to do with injuries sustained on a business’s premises, losses due to alleged breaches of contract or even damage to a reputation.

However, there can also be other motivations. For example, someone might target your business with a lawsuit to intimidate you or silence you.

Direct actions that defendants take

As you might assume, the variety of types of cases and motivations for those cases leads to a similar variety of legal defense strategies. People might do any of the following, or a combination thereof:

  • Attempt to settle out of court
  • Litigate the case
  • Seek dismissal

However, because legal filings are part of formal procedure, the case could very well proceed in your opponent’s favor if you decide to ignore communications. Similarly, if you decide to respond informally, you might find that action has unintended consequences for you and your business within the context of the legal process.

Indirect actions that could protect businesses

Apart from directly responding to a lawsuit, you might find that there are other tools available to you. They might include:

  • Considering your insurance strategy
  • Auditing internal policies, especially regarding employment and client interactions
  • Reviewing contracts, intellectual property and other common points of dispute

While these might not resolve the issue at hand, they could strengthen your organization. These are just some of the ways businesses either avoid disputes or strengthen themselves against those that may arise in the future.