Undergoing a Corporate Litigation- What are the Steps to Take?

 | 
March 20, 2022
UPDATED: 
March 21, 2022
Undergoing a Corporate Litigation- What are the Steps to Take?

Corporate litigation encompasses any legal action taken to manage business disputes. It may involve consumers, business owners, and their contractors. It often begins the moment a lawsuit is filed against or by a company until legal representation is provided to resolve the issue.

Knowing that corporate litigation involves a whole lot of torts, personal injury, and contract issues, it's not unlikely for your Edmonton business to not face even one lawsuit during its lifetime. You can be the one suing or getting sued. Thereby, the best thing is to be prepared when it does happen.

As a business owner in Edmonton, here are critical steps to follow if your company faces litigation. 

1. Keep accurate records as evidence

The stronger your documentation, the better prepared you are to defend your business or file a breach claim. Keep all records concerning the contract, supplies, payments, etc.

Proper documentation means having a high volume of factual information. It's best to refrain from fabricating evidence. Record everything as it is, not as you want it to be, as this will help your case be more straightforward. If the court ever discovers you've tried to distort information, you would be severely penalized. 

2. Evaluate the legal action needed

Not all business litigation cases should go to court. Most times, keeping things from going to court is key to the smooth running of your business. It may save you cost and your reputation. However, sometimes that becomes the last or best resort, especially when you stand to gain more or your opposition wouldn't agree to the settlement.

So it's best to evaluate the appropriate course of action. While you can defend your organization yourself in court, it's advisable to speak with an Edmonton corporate lawyer. Such a professional would be able to evaluate your case, seek out-of-court settlement where appropriate, or leverage their experience to represent you in court. 

3. Limit communication with the opposition party

When accused by another business or individual, your instinct may compel you to speak with the plaintiff. But remember that not only is business paperwork exposed during commercial litigation- email, phone calls, and direct conversations may be recorded and used against you.

Before making any contact on resolution, it's crucial to have a corporate lawyer on your side to ensure you don't indict yourself.

Additionally, avoid saying "it's my mistake" to your opposition in an attempt to sound amicable and understanding. On the other hand, you must remain civil and refrain from aggressive language to the other party even when they're the breaching party. Avoid allowing emotions to get in the way when dealing with commercial litigation. 

4. Go about your business as usual

Commercial litigation may leave your entire organization overwhelmed but do your best to maintain everyday business operations. This can help you limit liability, continue generating revenue, and manage challenges that may develop. 

5. Be prepared for court

If one party refuses settlement, you would have to go to court. The process of bringing a lawsuit to court begins with the plaintiff filing the complaint to the court. The court issues a summons to the defendant with a deadline for a response. A date will also be set for the court hearing.

Before that date, gather as much information, records, and statements from your opposition and other parties involved. This is called the discovery process. Your attorney can help you with this. 

Note that whatever you discuss with your attorney is confidential and cannot be used against you in court. But if you reveal such conversations to a third party, that person can use it as evidence against you. 

Finally

Remember that court litigation is not the only solution. Out-of-court settlement may help your business save cost and time. Although it may require some compromise on your part, this may be the most favorable in the long run.

Every case is unique; so make sure to discuss the same with your lawyer to determine what course of action best protects your interests.

Author

  • Chuck is Score LA’s Executive Director of Events and Marketing. He aims to help business owners and would-be entrepreneurs in Los Angeles improve their business practices.

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