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Knowing When Your Business Should Pursue Litigation

Clark Law Firm PC Aug. 17, 2023

Justice Lawyer Discussing Contract Document with BusinessmanIf your business becomes embroiled in a dispute, you may feel the urge to take legal action to seek a resolution. There are different factors that you should consider, however, in order to determine when your business should pursue litigation. Being certain you are making the right decision and knowing the different options available to you to resolve disputes is prudent before taking any decisive action. 

A wide range of businesses have trusted Clark Law Firm PC with their legal matters for years. Whether you are looking to create or dissolve a business or are considering litigation to seek a resolution to a dispute, Clark Law Firm PC has the knowledge and experience necessary to help you make well-informed decisions. If your business is in need of legal representation in Birmingham or anywhere throughout the state of Alabama or the Florida Panhandle, reach out today to schedule a consultation. 

Common Issues That Lead to Business Litigation 

There are many different reasons a business can end up in litigation, though some are more common than others. A few of the issues that often lead companies to pursue litigation include: 

  • Product or premises liability claims filed against the business 

  • Breaches of contracts 

  • Intellectual property disputes 

  • Employment issues 

  • Shareholder/member/owner disputes (depending on the type of business structure) 

Though the list above is not exhaustive, those are some of the more common types of disputes that lead to a courtroom. If your situation may end up in litigation, it’s important to know there are other options. 

Options for Resolving Business Disputes 

Depending on the type of business, the details surrounding the conflict, and other factors, there are different resolution methods available. Knowing what options are open to you and your business dispute and how they could help will benefit you as you search for the best path forward. 

  • Mediation — Through mediation, the two parties involved in the dispute mutually agree to meet with an impartial third party to settle their issues. 

  • Negotiation — Similar to mediation, negotiation is a situation in which the disagreeing parties will attempt to come to a compromise without going through litigation. 

  • Litigation — If other methods are either not available or fail to resolve the dispute, you can turn to litigation to reach your desired outcome. 

Working with a knowledgeable business law attorney will allow you to learn more about these options and how they apply to your dispute, helping you determine the best course of action for your business. 

Knowing When to Pursue Litigation 

Some of the factors to consider when determining whether it is the right time for your business to pursue litigation include: 

  • You have calculated the (often significant) financial cost associated with litigation. 

  • Urgent situations have arisen within your business that require an immediate resolution. 

  • Attempts at negotiation or mediation have failed to produce a settlement. 

If your business is still involved in a dispute after you have considered the factors listed above, you may be at an impasse that can only be cleared by litigation. 

Working to Protect Your Best Interests 

When you’ve put so much effort into building your business, you will go to great lengths to protect its health and future viability. Working with a law firm with extensive experience in business law matters is a great first step. There is a time to turn to litigation to solve your problems, but it is also important to be aware of the alternative resolution options that may be a better fit. 

If your business is in a dispute in Birmingham, or anywhere in the state of Alabama or the Florida Panhandle, you can trust the Clark Law Firm PC to work hard on your behalf. To get started on building a legal strategy or learn more about the options that may be available to you in your situation, reach out today and schedule an initial consultation to discuss your case.