Tips to Avoid Business Litigation

Going to court is expensive and can take your focus away from running your business for a significant period of time. In order to avoid the added cost and stress of litigation whenever possible, include these steps in your business practices.

Have effective and enforceable contractsFotolia_74847478_Subscription_Yearly_M-300x180

Every business relationship should be memorialized in a written contract. This includes between owners, with clients and customers, with employees, with vendors, and more. Having a contract that is properly drafted to best govern the specific relationship and responsibilities at hand can help avoid disagreements down the road. Each party will know his or her obligations and expectations because it is in writing and the contract can help dictate how disputes will be resolved out of court.

Have appropriate insurance coverage

It is critical to fully understand the risks of your business and have adequate insurance policies to cover those risks. If you are liable to another party and your insurance can cover the harm caused, the case often ends there and litigation can be avoided. Some types of insurance to consider include:

  • General liability
  • Commercial property
  • Professional liability
  • Product liability
  • Workers’ compensation

Properly train and supervise employees

Hired employees are an extension of your business when they are on the job. Hiring or maintaining risky employees may only lead to liability for their actions if they are negligent or cause intentional wrongdoing. Ensure all staff members are fully trained for their job duties and that disciplinary action is taken for employees engaging in misconduct.

Keep impeccable records

Some disputes arise due to mistaken impressions or misunderstandings. In such cases, maintaining relevant records to clear up the misunderstanding can be the end of the conflict. Records should not only include contracts but also notes of any substantive communications. When it comes to employees, you should have a specific record system in place and understand what information should be kept in an employee file and what information should not.

Manage rising disputes

Prompt attention to potential conflict can be a powerful tool in preventing a conflict from escalating to litigation. If you believe that a client or business you have worked with is unhappy, address the situation head-on and try to find a solution that will be good for everyone. If you are not getting paid or have an issue with another party, try to reach a payment arrangement or another compromise that will still benefit your business. Negotiating on your own can go a long way to resolve a dispute. If you need professional assistance, mediation and arbitration are alternative methods to resolve your dispute before you head into court.

Discuss Your Legal Needs with our San Jose Business Litigation Attorneys Today

At Structure Law Group, LLP we ensure our business clients have protections in place to put them in the best position to avoid conflicts.  Any disputes that do arise requiring a San Jose Litigation Lawyer, Structure Law Group, LLP will handle it in the most efficient and effective way possible. Consult with our San Jose Litigation Lawyers today at 408-441-7500.

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