Legal disputes are quite draining in terms of resources. Compromise is made more difficult because litigation, especially the small claims kind, is a win-lose structure. It’s best to see if you can work this out amicably before taking legal action. Read on to find out everything you must prepare before filing a lawsuit.
Costs and Benefits
First, you need to weigh the potential benefits of filing a class action lawsuit or any other case against its potential costs. As a business owner, you regularly balance potential benefits against potential drawbacks.
Like any other business choice, filing a lawsuit involves risks that must be weighed against the possible rewards of a successful outcome. Litigation could be the best option if the potential benefits justify the dangers.
Winning Possibilities
Once you’ve decided to pursue a civil action, you should be aware that you’ll likely be the one who must provide evidence supporting your claims. It’s not worth the effort and money to file a civil action if you don’t have solid proof to support your claims. Before filing a lawsuit, you should discuss the merits of your claim and the chances of a successful outcome with a lawyer.
Available Options
Do your best to avoid going to court by exploring alternate dispute resolution methods. Don’t just give up hope and try something else to get better. A demand letter might be all it takes to terminate the disagreement. In some cases, mediation or dispute resolution could be preferable to sending a demand letter.
Willingness to Involve a Witness
You should also consider whether you are willing to summon witnesses whose testimony could make a difference in the outcome of your case. This witness’s information may be crucial, but they’re also the type of person you wouldn’t want testifying in court.
Time Availability
What is your true tolerance for being bogged down in court? Litigation, as everyone knows, can take a very long time. Weigh the value you have on winning the case against any potential losses. Time spent in court is not spent running the business, perfecting the product, and creating money.
Collectible
It’s possible that going to court is a sure bet, but you should also consider whether you’ll actually be able to cash in your winnings. It’s possible that the other side doesn’t have the money to pay what you’re due.
If this is the situation, little can be done to get the money back. A non-collectible award may make it unfeasible to pursue legal action.
Limitations State
This one is simple, but you must check that the statute of limitations doesn’t apply. Forget about winning a case if you wait too long to pursue legal action after the statute of limitations has passed and the injustice for which you seek redress has already occurred.
Privacy
This one is simple, but you must check that the statute of limitations doesn’t apply. Forget about winning a case if you wait too long to pursue legal action after the limitation period has passed and the injustice for which you seek redress has already occurred.
The Remedy You are Seeking
Think carefully about what you want to achieve by filing suit. Do you seek a restraining order to prevent the defendant from taking action? Do you want money for your trouble?
Would you like the court to order the plaintiff to do something? One example would be to order the defendant to meet the contract terms after they have breached them by filing a motion for contract breach. Verify that the requested remedy is both something the court can offer and something it would be worthwhile to litigate to acquire.
Possible Outcomes of Suing
In various scenarios, a lawsuit could end up detrimental to your company. Suing a business partner over a disagreement is not necessarily the best option if you want to keep working with them after the conflict has been resolved. You may choose to look into less aggressive means of resolving your conflict. Suing might potentially also hurt your brand and be pricey.
Bottom Line
The discussed guidelines should guide you in understanding everything you must prepare before filing a lawsuit. You can also contact your attorney immediately if you or your company is considering filing a lawsuit of any kind so that they may review your situation and recommend the best way to proceed.