of the strengths and weaknesses of your case, the necessary steps to work toward a successful resolution, and outcomes of past similar cases. important as likelihood of success. Many clients are surprised to learn that collecting on a judgment is not an automatic given following a victory. Be sure you are not left in a situation where you have expended tens or even hundreds of thousands of dollars, only to be left with a judgment "that isn't worth the paper it's printed on." The defendant may be a fly-by-night company or have little to no assets. You may obtain a judgment against a company, but later discover that the CEO has transferred all the company's assets to his wife or another entity he controls. Unless a defendant is an established, reputable company or some equivalent, collection may be as big or even a bigger battle than the underlying lawsuit itself. when measured from the filing of the complaint through a trial. That is not even counting an appeal or even multiple appeals. During all this time, you are meeting with and paying for attorneys, responding to inquiries, and attending depositions and hearings. All that is valuable time away from growing and working on your business, not to mention added personal and professional stress. business missing out on because your time, money and efforts are tied up bringing a lawsuit? If you are a small or medium-sized business, the money and time you spend bringing a lawsuit is money you can't spend to hire a new sales manager, invest in a new project or product, or pay out as profit at the end of the year. may be true for celebrities, but it definitely is not true for businesses. When you file a lawsuit, understand that the defendant can then assert counterclaims against you or attempt to bad-mouth you in the media or your industry. This is actually what happened in the case of Donald Sterling, former owner of the Los Angeles Clippers professional basketball franchise. His wife sued V. Stiviano, a female friend of Sterling's, for the return of expensive gifts Sterling gave to Stiviano. A tape recording of Sterling making racist comments came out soon after that, the National Basketball Association for life and being fined $2.5 million by the league. If your company is the subject of negative comments or headlines, or develops a reputation in your industry for being litigious, this could significantly jeopardize your business and your relationships with your business partners and employees. scenario where you must evaluate risk vs. reward, i.e., the risk of filing and spending money on a lawsuit with an uncertain outcome vs. the reward of winning damages and possibly stopping the wrongdoer from continuing to harm you. Make sure litigation does not become a Pyrrhic victory, i.e., that the cost of winning exceeds or negates any benefit gained. In most cases, each side is responsible for paying its own attorneys' fees. Thus, even a "successful" verdict or judgment must be viewed with an eye toward the cost of getting there. Moreover, most lawsuits settle, frequently after months of litigation and tens of thousands of dollars expended, if not more. While not always the case, the results achieved by settling after months or years of litigating can frequently be reached early in litigation or even before a lawsuit is filed, which can mean a savings of tremendous time and money. So where does all of this leave you? Talk to several lawyers before making a final decision on whether to file suit or not. Many, if not most, business litigation attorneys do not charge for the initial consultation. During your initial meeting, you should look for the attorney to be honest and candid with you regarding cost, the merits of your case, and the likelihood of success and recovery. Sometimes litigation is a painful but necessary process, and sometimes it can and should be avoided. Once you have evaluated these seven factors, you can make an informed, educated decision about whether filing a lawsuit is the right decision for your company. |