5 Keys To Handling Business Litigation

Business is a notable source of litigation in America. If you run a business and are facing litigation, it's important to address several key issues.

Documents, Documents, and Documents

Most cases center on what the parties can document. You need to have a good document storage system so you can preserve paperwork and find it. Similarly, you'll want to have a good system in place for producing copies and keeping track of which documents are the originals.

Likewise, you should prepare to receive a lot of documents. One of the main reasons a company hires a business litigation attorney is to have some else sift through documents following requests.

Timelines

Similarly, a business lawyer will want to show the sequence of events regarding the alleged matters. You want to keep records of conversations, calls, emails, and other communications. For a business litigation lawyer, anything that sets up the timeline is gold because it frames the narrative of what happened and when.

Interpreting Clauses

Ideally, the business attorney who drafted your agreements with other parties did a good job of writing clear clauses. Likewise, they should have read everything drafted by the other parties thoroughly before you signed.

Whether you're a defendant or plaintiff, a lot will ride on what a judge thinks the relevant clauses say. Ambiguity and omission generally favor the non-drafting party.

Standard of Proof

Business litigation falls under civil law. Consequently, the civil standard of proof applies. This standard requires you to show the court that your argument is more likely than not the true one. Essentially, it is a 51% standard.

Suppose there are questions about an ambiguous clause. If your business lawyer can show emails where the other party agrees with your interpretation of the clause, that will likely bolster your case.

Good Faith

A court expects all of the parties to deal with the case in good faith. Foremost, this means not bringing in litigation until you're sure there is a meaningful and irresolvable dispute. Whenever possible, a judge will encourage the parties to negotiate and resolve the matter without taking up the court's time. If you can't show that you've made a good-faith negotiation effort, there's a good chance the court will order you back to negotiations.

Bear in mind, many cases eventually end in settlements or one party dropping the matter. You may discover evidence that convinces the other side to hang it up, for example. Only once protracted negotiations have failed is a case likely to go to trial.