how to avoid litigation as a lawyer

Top 7 Tips to Avoid Litigation

• Create Clear and Understandable Agreements. Creating clear written agreements seems obvious, but it is not uncommon for...
• Obtain Legal Advice. Even what may appear to be a simple or routine agreement should be reviewed by a lawyer. The lawyer...
• Follow Agreements. Surprisingly, even very sophisticated parties often fail to follow their own...

Full Answer

How to avoid litigation?

This blog post outlines a few suggestions on how to avoid litigation: 1 Create clear and understandable written agreements 2 Obtain legal advice before you sign an agreement 3 Follow agreements 4 Engage counsel to invoke privilege 5 Negotiate – do not try to bully 6 Consider mediation 7 Compromise to avoid litigation

How does litigation affect a business?

These distractions can be time-consuming and detrimental to a company’s productivity. Also, litigation involve business relationships, either directly or indirectly. If not well-managed, these disputes can result in strong personal animosities that impact existing and future business.

Should I engage a lawyer to help with my investigation?

You should engage counsel to advise you, not just to provide important advice, but to cloak your investigation with privilege. If witness interviews and internal reports are prepared for counsel in contemplation of potential litigation, they are privileged and only need to be provided to the other side if you choose to do so.

Is the cost of litigation worth it?

The cost of litigation is almost always higher than you expect. Not just the legal fees, but the time, stress, lost business productivity, and lost opportunities. Business disputes are inevitable.

What are three ways you can reduce the risk of litigation?

Even if litigation is unavoidable, following these steps will put you in a stronger position.Limit your liability structurally. ... Never choose a 50/50 proposition. ... Get insurance. ... Put it in writing. ... Limit your liability contractually. ... Plan (ahead) for the worst. ... Train your staff. ... Know your business partners and clients.More items...•

Why do people avoid litigation?

Why Avoid Litigation? Cost: A business should consider not only attorneys' fees, but also other associated litigation costs, such as electronic discovery, vendors, experts, court costs, etc. Risk: Litigation is inherently uncertain.

Why should you negotiate before litigation?

Generally, it is best to negotiate rather than litigate if at all possible. Most disputes can be resolved if two people will just remain reasonable and try to bargain for an agreement. Doing so also has the benefit of avoiding expensive attorney fees and litigation costs.

What is the most important consideration one should make when setting out to litigate?

The important thing is that you think about what you want to achieve or to avoid in the lawsuit and communicate with your lawyer about it. You and your lawyer first should discuss the litigation process, and focus specifically on your lawsuit.

Why is litigation bad for business?

Publicized disputes can tarnish a company's reputation. Contract disputes and accusations of fraud can force a company to put business on hold. Litigation can ultimately decline a company's value, drive down sales, or even cause a business to fold.

What possible ways that you can do so that legal problems can be avoided?

How to avoid legal problems in businessProtect Your Reputation. This one seems obvious, and yet so many small business owners don't heed the warning: be careful what you say and do online! ... Incorporate Yourself. Many business owners operate as sole proprietorships. ... Avoid Suspicious Situations. ... Get Protected. ... Stay Vigilant.

When should you litigate?

There are situations in which one should not settle. It is usually inadvisable to settle solely due to a lack of self-confidence, to placate someone else in spite of one's firm conviction, gut instincts, or best judgment or because of temporary fatigue, depression, or a lack of moral courage.

Why do lawyers take so long to settle a case?

The reasons a case can progress slowly can be summed up into three general points: Your case is slowed down by legal or factual problems. Your case involves a lot of damages and substantial compensation. You have not reached maximum medical improvement from your injuries (this will be explained below)

How do I reject a settlement offer?

Always reject a settlement offer in writing. Type a letter to your contact at the insurance company listing the reasons you think that their offer is too low. Back up these reasons with concrete evidence attached to the letter. Finally, provide a counteroffer of a sum you think is more reasonable.

What do lawyers do besides court?

Outside of court, trial lawyers may review files, interview witnesses, or take depositions. Criminal defense lawyers and constitutional lawyers may also act as trial lawyers.

How do lawyers negotiate settlements?

The negotiation process typically starts with your lawyer providing a written proposal for settlement to the insurance adjuster or the defendant's lawyer. The adjuster or lawyer will respond to your lawyer either in writing or over the phone.

Can you settle out of court after being served?

Summary: Yes, you can settle after service. The best way to settle a debt lawsuit is first to file a response, then contact the otherside and make an offer.

What is a litigation blog?

This blog is authored by members of the Litigation and Dispute Resolution Department. We follow new and interesting issues emerging in the legal and business communities. The wide range of experience among the members of our litigation group will provide a diverse and insightful examination of current legal trends and topics. Our goal is to provide a source of valuable information and insight on a wide variety of matters for our readers.

Why do lawyers need mediators?

Lawyers often succumb to the strong temptation to tell their clients what they want to hear. Mediators also assist parties identifying creative solutions and provide them with an opportunity to be heard.

What is privilege in a lawyer?

As a general rule, communications between a lawyer and client are subject to privilege, meaning those communications cannot be disclosed. When a serious issue arises, it is important to invest the time and resources to deal with the situation in a way that will reduce the risk of litigation ...

Is the court an uncertain place?

The courts are an uncertain place; judges are unpredictable. Even what appear to be the strongest of cases fail at least 10 percent of the time. The cost of litigation is almost always higher than you expect. Not just the legal fees, but the time, stress, lost business productivity, and lost opportunities.

Is mediation worth it?

Consider Mediation. If both parties to a dispute are genuinely prepared to compromise, the joint engagement of a mediator is almost always worth it. In order to effectively mediate, it is not necessary for each party to have lawyers or for the litigation to have reached a certain stage.

Should a lawyer review a simple agreement?

Even what may appear to be a simple or routine agreement should be reviewed by a lawyer. The lawyer may have constructive suggestions that will avoid future potential disputes. It is worth investing a little at the outset to avoid spending a lot later on avoidable litigation.

Should I avoid litigation?

It should be avoided, if at all possible. If it is not possible to avoid litigation – you have been sued or absolutely need to sue – you should try to resolve the litigation as quickly as possible. The longer litigation goes on – and it can go on ...

Why should a company avoid litigation?

However, properly managing disputes is an excellent way to avoid litigation. There are many reasons why a business should avoid litigation. Going to court is costly and often times can lead down a torrential path that may be impossible for a company to recover from. There are certain risks that accompany a trial.

What are the provisions of arbitration?

Arbitration provisions, sometimes preceded by mandatory mediation; Agree in advance to be bound by expert opinions rendered by mutually agreeable experts; Fact finding and/or neutral evaluation; and. Require partnering, whereby parties agree to cooperate as a team to improve communications and avoid disputes.

What are some examples of review procedures?

Some review procedure examples are: Create a reporting procedure encouraging employees to report potential risks; Identify the stage of the risk and develop a plan for risk evaluation;

Have A Contract And Put EVERYTHING In Writing

When a business starts working with a client it is essential that you put everything in writing within a contract and have it signed by all parties. The contract should include very specific details such as the type of services provided, fees, dates you will be providing services, cancellation policies, rescheduling policies, and so on.

Communicate With Your Clients Throughout The Entirety Of Your Relationship

It is important to keep your client informed and happy throughout working together. The contract is a roadmap for your terms of the services but it does not update the client on how the actual process is going.

If An Issue Arises, Work With Your Client BEFORE It Escalates

At times an issue may arise that falls outside of the contract or there is a misunderstanding. This can be a tricky situation as the business and client may be adamant that they are ‘right’ about the problem, however being correct will not mitigate the issue.

Negotiate A Settlement

Unfortunately, sometimes the issue at hand is unavoidable and it is time to try to negotiate with your client. Think of ways your client will be happiest such as reduced fees, additional services without charge, a modification of the contract, and more.

Update Your Contracts To Avoid A Similar Situation In The Future

If issues arise at any point with your current clients, you should review and edit your main client contract for future services. It is important to regularly go through your contracts to make sure they are up to date and edit any clauses that may cause conflict or confusion with clients.

What is the tactic of acknowledging employee concerns?

Often, a manager doesn't even need to act on an employee's concerns, as long as he or she simply validates them. Employees need to believe that they are being heard and that their opinions matter.

Should employers give themselves discretion?

Employers should give themselves discretion to assess the nature and gravity of an employee's misconduct when assessing the type of discipline to impose. Again, the key is to strike a balance between treating similar cases similarly and exercising discretion in appropriate circumstances.

Do employers need to write a novel every time a performance or disciplinary issue arises?

However, employers need not write a novel every time a performance or disciplinary issue arises. All they need is three sentences to explain (1) what happened that was bad, (2) why it was bad and (3) what will happen next time if a policy is violated or expectations are not met.

How to avoid litigation?

Litigation rarely comes from strangers. Most likely, the opposing litigant will be someone you know. Disgruntled employees are a major source of litigation. So are suppliers, customers, business partners and competitors. 2.

Do you have to insist on something if you have a contractual right?

Similarly, just because you have a contractual right to something doesn’t mean you have to insist on it. If the other party is experiencing changes that make the business arrangement more difficult for it, at least consider whether the arrangement could be modified and still satisfy your business interests.

Do you want a long term relationship?

Remember, you want a long-term relationship. Still, you need to be firm about what you need from the arrangement, and not give in on things that will cause problems in your business. It may be that circumstances have changed so much that the arrangement can no longer work for both parties.

How to resolve a dispute with a lawyer?

Many disputes can be resolved by writing or responding to a letter. Politely but firmly state the basis of your claim, referencing your provided documentation . Propose your solution to the dispute, and give a firm deadline to respond. If appropriate, send your letter via certified mail. If your dispute is technical or overly legal, consider having an attorney review your letter before you send it. Always consult with an attorney before taking a legal position that may be harmful to you later on.

What to do when you disagree with someone?

If there is a disagreement, be straightforward about your business practices, products or procedures. Acting with integrity and honesty will go a long way to ensure that your business prospers and that you avoid conflicts. Also, if you disagree with someone else, be polite about it.

How to prepare for an employment issue?

Having a solid foundation that implements sound employment practices will likely prepare you for any issues that can arise. Act with integrity, honesty and transparency at all times. Don’t ignore or allow a problem to fester. Always make sure to address an issue head-on.

How long does it take for a lawsuit to be filed?

A case can take time, sometimes several years, to work its way through the courts, and delays could impact you and your business. There is also no guarantee that filing or defending a lawsuit will be successful – or that it will be successful to the extent that you believe it should be.

Can assurance prevent litigation?

No assurance can prevent litigation, but there are ways to help avoid problems and promote an effective resolution when a dispute does arise. If litigation is necessary, being prepared will help you be in a much stronger position.

Should contracts be cobbled together?

Contracts should be designed for the purpose you intend to use them for, and you must make sure you understand and follow all the provisions of your written agreement. Don’t use cobbled-together contracts as they probably don’t address the specific problem and could only compound it.