How to Prepare for Impending Commercial Litigation

Whenever possible, business disputes should be resolved out of court. However, litigation is sometimes the only means to achieve adequate compensation for losses or to otherwise correct injustices. When litigation looms, careful and thorough preparation can significantly affect the outcome of the case, minimizing potential liabilities and protecting your company's interests. 

Here are some essential steps a business should take to prepare for commercial litigation:

1. Assess the situation — Understand the nature of the dispute, the parties involved and the claims being made. This includes reviewing any relevant contracts, communications, and documents related to the dispute. Evaluating the strengths and weaknesses of your position will help in making informed decisions throughout the litigation process.
2. Preserve evidence — This includes emails, contracts, financial records, and any other documents related to the dispute. Implement a legal hold to prevent the destruction or alteration of any potential evidence. Ensuring that all relevant information is preserved can prevent accusations of spoliation and strengthen your case.
3. Review insurance policies — Check to determine what coverage is available for the dispute at hand. Many businesses have comprehensive general liability policies as well as errors and omissions insurance and other specialized coverage. Although, notifying your insurance carrier is essential to triggering the carrier’s duty to defend.
4. Consult with legal counsel — An experienced commercial litigation attorney can provide valuable guidance. They can help you understand your legal rights and evaluate your case. Early consultation can also help in avoiding potential pitfalls and in making informed decisions that could affect the outcome of the litigation.
5. Develop a litigation strategy — Work with your attorney in defining your goals, identifying key issues and determining the best course of action. Whether you decide to pursue settlement negotiations, opt for mediation or go to trial, you need a strategy to guide your actions and help you stay focused on your objectives.
6. Identify and interview witnesses — Working with your attorney, conduct interviews to gather witness accounts and to analyze how their testimony might impact your case. This can include current and former employees, business partners or any other individuals with pertinent information. Your attorney can help prepare witnesses for depositions and trial testimony.
7. Manage public relations — Litigation can affect your business's reputation. Determine what information can be shared publicly and how to handle inquiries from the media or stakeholders. Keeping communications clear and consistent can help protect your business’s reputation during the litigation process.
8. Evaluate settlement options — Settlement can be a cost-effective and quicker alternative to prolonged litigation. Discuss the potential for settlement with your attorney and weigh the pros and cons based on the specifics of your case. If settlement is pursued, be prepared to articulate your demands and to decide where compromise is possible.

By taking these steps, you can better position your business for a favorable outcome in litigation. H. Clay Parker, Esq. in Orlando represents Florida companies in commercial lawsuits, both as plaintiffs and defendants. Please call [ln::phone] or contact us online to schedule an appointment.