Business-to-business lawsuits can cost your company an incredible amount of money in legal fees, and they could also result in lost income and other damaging effects that are difficult to overcome. Some of the common issues cited in these lawsuits relate to contract breaches, fraud, libel, slander, copyright or patent issues and more. These types of lawsuits are unfortunately relatively common, and you should be aware of a few important facts about these types of cases so that you can take appropriate steps when possible.
Many Business-to-Business Lawsuits Can Be Prevented
While some business-to-business lawsuits may seemingly arise out of the blue, others are entirely justified and preventable. You may be able to avoid some of these lawsuits by seeking legal counsel from business law attorneys like Carmody Torrance Sandak & Hennessey LLP up-front. A consultation about a contract issue, a possible patent infringement or something else can be investigated up-front before you act. In the event that you believe another company has wronged you, your attorney may prepare a cease and desist letter before the issue becomes a court case. Many issues may be resolved through these basic efforts with minimal time and cost.
Arbitration and Mediation Is an Option
Not all legal issues will result in a lengthy, drawn-out court case. If both parties are agreeable to it, the matter may be decided through arbitration and mitigation. Both parties and their lawyers may meet in an attempt to reach an amicable solution. A mediator may also be present, and this professional may be an unbiased third party. In the event that an agreement cannot be reached through arbitration or mediation, the case may proceed to the courts.
Some Lawsuits Could Be Bad for Public Relations
While some lawsuits are inevitable or necessary, many business-to-business cases are filed before all alternative options are explored. A lawsuit may result in poor public relations. Negative press can potentially cause decreased sales. In some cases, long-term damage is done to your company’s reputation as a result of the case. All efforts to resolve the issue before it develops into a court case should be explored.
If you are thinking about filing a business-to-business lawsuit or if you have received a legal letter about a potential issue, it is important to take any preventive steps possible to minimize the chance that the matter will escalate. While you understandably want the matter resolved in a way that is beneficial to you and to your company, remember that being open to negotiations is essential.