We live in a litigious society where the court system is often used to handle disputes and settle cases. Whenever people are involved in a problem, an accident, or a dispute, they may rush to sue. While litigation is appropriate in some situations, in others it is not.
Before Going to Court
How do you know when litigation is the right way to go?
Before you decide, there are several factors you should carefully check for verification, as detailed below.
Can You Sue?
This is the first and arguably most important factor to check before you sue. Do you have the legal standing to file a lawsuit? Is there something that might prevent you from making a legal standing?
Factors you should be keen to check include the statute of limitations and whether or not you signed an arbitration clause. In cases where you signed an arbitration clause, the court system might not be the best option as you might have to solve the issue through binding arbitration.
How Strong Is Your Case?
“When filing any lawsuit, you will have to provide proof to back up your claims. Therefore, you need to gather enough evidence for presentation in court,” says lawyer Omeed Berenjian of BK Law Group. “Thus, you will need to consult your lawyer regarding the efficacy of available evidence.”
If you lack enough evidence, the lawsuit will likely become a colossal waste of time and resources. Therefore, before filing the lawsuit, you should audit available evidence and confirm its sufficiency.
Are There Any Possible Negative Consequences of Suing?
In some situations, suing may actually have a counter effect and hurt your business. Take a situation where you are involved in a dispute with a business partner.
Suing will most likely hurt your business and ruin the relationship. Another case is when the dispute involves close family members. In such situations, it would be best to look for other solutions to solve the conflict instead of filing a lawsuit.
Another issue that can damage your company’s reputation is privacy. You should note that the lawsuit is likely to be a matter of public record. Hence, will you be comfortable having your intricate details out for the world to see?
What Are You Looking To Get Out of the Lawsuit?
Before you file any lawsuit, you need to consider what you are looking to get out of the legal action. Are you looking for financial compensation? Are you looking to compel the defendant to do something?
You need to check all these factors and ensure you file the lawsuit knowing what you want to achieve fully. Lastly, you should ensure that the remedy you are looking for is something the court can provide.
Is the Reward Achievable?
Once you have a clear picture of what you want to get out of a lawsuit, you should check whether the opposing party can provide the reward once you win the case.
In cases where the opposing party cannot afford to provide your reward, then the lawsuit might be pointless as you are less likely to get anything out of it.
What Are the Costs and Benefits of Filing the Lawsuit?
Before you file any lawsuit, you should perform a cost-benefit analysis. This way, you will clearly see whether the lawsuit is worth it. It would be best to be familiar with risk versus reward analysis here.
You should treat the lawsuit as a business decision and see what you stand to gain after filing. Will it have more benefits than costs?
The Takeaway
Filing a lawsuit may be a complicated process depending on the nature of the case. Sometimes, these legal processes may end up having more costs than benefits. Therefore, before you file a lawsuit, you should double-check everything and ensure all possible alternatives are tried and tested.
