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by Victoria Flinn McCurdy, Esq., Epstein Becker Green
If your business is facing a civil lawsuit (such as an employment or contract dispute), proper preparation can mitigate the stress of going to court and potentially reduce your legal fees.
5. Manage expectations. Business litigation can take years to resolve, which may feel daunting. The health of your company and its employees depends on your ability to compartmentalize the dispute and maintain normal operations. Discuss the case status and your desired outcome (which may change over time) with your attorney at regular intervals throughout the case.
"Do not fabricate or destroy evidence. Courts can and do impose severe penalties for such conduct."
1. Report potential claims. If your business has insurance that may cover all or part of a dispute, report potential claims to the insurance carrier as soon as possible to determine whether coverage applies. The insurance contract may dictate your company’s legal representation in the dispute.
2. Secure legal counsel. It is important that your business is represented by an attorney who has experience litigating the type of dispute your company is facing. They can help you explore non-litigation alternatives and provide valuable guidance if litigation is inevitable. Be honest with your attorney about the good and bad parts of your case. Communication is essential.
3. Preserve evidence. Whether your business is a plaintiff or a defendant, it is critical to identify key players and preserve relevant information at the outset of a dispute. All documents and communications (paper and electronic) relating to a dispute should be identified and saved. This includes contracts, memoranda, invoices, reports, records, letters, emails, text messages and the like. Be mindful of any retention policies your business may have in place to ensure that relevant emails, for example, are not inadvertently purged before the dispute is resolved. Do not fabricate or destroy evidence. Courts can and do impose severe penalties for such conduct.
4. Limit communications unless approved by an attorney. If you believe a dispute is likely to result in litigation or if a lawsuit has already been filed, limit written and verbal communications about the dispute unless approved by your company’s attorney. Communications with your potential adversary are admissible as evidence in court. Likewise, internal communications with or among your company’s employees about the dispute are generally also admissible unless a privilege applies.