Four Signs Your Business Dispute is Headed for Litigation

If you have been in business for a while, you might be familiar with the foreboding feeling that comes with impending lawsuits. Other times, even the most seasoned business people get slapped with litigation they never saw coming. Although defending yourself against a lawsuit is never a desirable situation, being able to sense trouble before it strikes can give you time to prepare. Below are four signs that could mean your business dispute is headed to court.

A weak business contract. It is, of course, no one’s intention to draft a contract with glaring flaws. Entrepreneurs are often eager to get their businesses started and can rush through the contract-drafting process. An item sometimes not included in a contract is the procedure to be followed when one or more parties fail to live up to their end of the agreement. Unfortunately, bad contracts are common, but don’t lose hope or feel alone if you find yourself with a less-than-optimal business contract. In the future, you can prevent this type of issue by having a lawyer review your contracts.

Communication wanes or ceases. While disconcerting, this does not always lead to litigation. If someone is ignoring your calls or emails in the midst of a business conflict, they could simply be miffed at the situation and wish to cool down. However, if the other party continues to not reply to your efforts to reach out, it may be that they have given up on the possibility of a compromise and are preparing for a legal challenge.

Your client or partner complains to an outside agency. This is an obvious sign that the other party is seeking relief from a third party. Once this line has been crossed, it is difficult to have positive attitudes going forward. Depending on the circumstances, the party seeking damage relief may be legally obligated to turn to an agency like the Better Business Bureau before filing a lawsuit, so this step may ultimately be a formality for the other party.

Good-faith efforts to reach a compromise have ended. If communication has ended between you and the other party, you can bet that a compromise brokered without legal guidance is not going to happen. The more money is involved in a business dispute, the greater the likelihood of it ending up in court. So, unfortunately, if you and the disputer are at an impasse, someone else will have to end the stalemate.

Who can help?

As much as you want to avoid them, lawsuits are unfortunately an inevitable part of doing business. When you receive notice that you or your business is a defendant in litigation, the only way out is through. Please contact Drucker & Mattia at (718) 458-2312 so you are prepared for any legal challenges that come your way.