One of the most stressful aspects of running a business is the risk of getting involved in a dispute that leads to litigation. Litigation takes time away from key business operations and can also result in financial losses. The direct costs of business litigation tend to be significant, and there are also indirect and even hidden costs that can land serious blows to your bottom line.
If you think you’re heading toward litigation, you need an experienced business lawyer on your side. The team at Weisblatt Law Firm is committed to protecting the interests of business owners throughout Texas, and we can help you effectively navigate your legal issue with as little disruption to your finances as possible.
Need a business law advocate you can trust? Contact our team at (713) 666-1981 to speak with an experienced business litigation lawyer today.
Direct Costs of Business Litigation
Understanding the Quantifiable Expenses
Perhaps the most obvious direct cost of commercial litigation is having to pay fees to business litigation attorneys. These fees can come in the form of hourly rates, fixed fees, or other options. Added to that are fees that you may need to pay to expert witnesses to testify on your behalf, as well as court fees and document fees.
These expenses can quickly add up, especially in complicated cases where there may be a need to rely on more than one expert witness or when there are multiple parties involved.
Indirect Costs of Business Litigation
Unfortunately, business litigation also results in serious indirect costs. For example, litigation takes the focus away from running your business. You may have to spend time preparing for depositions or other procedures when you would otherwise be working. This can impact both operational efficiency and productivity. Business litigation can also mean needing to hire other employees to better manage the workload while you’re focused on the legal issues.
Hidden Costs of Litigation
The word can quickly spread that your business faces litigation. That knowledge could affect your reputation. A negative reputation can impact your relationships with stockholders, clients, and anyone else your business depends on. Business proceedings also tend to be public in nature, so it can be easy for anyone to learn why you’re going to court. Your company’s value and market position can drop as a result.
The stress that litigation puts on you and your team is another hidden cost. Team morale can decrease, raising the chances of internal conflicts that can damage operational efficiency. This only results in further losses.
Our business lawyers have served Texas businesses for decades. You can easily schedule a free over-the-phone consultation with our team for guidance.
Risk Mitigation Strategies
Fortunately, there are a few strategies you can implement to mitigate risk so that your business doesn’t face litigation issues that could drain your resources.
Invest in Risk Management
Perhaps the best way to avoid litigation is to address any issues in your business that could lead to legal disputes. For instance, you want to conduct regular audits and contract reviews to ensure that any potential problems are quickly fixed.
Consider Alternative Dispute Resolution Methods
Alternative dispute resolutions (ADRs) like mediation and arbitration can help you settle disputes without the substantial price tag that litigation can come with. These proceedings tend to be less formal and can allow you and the other parties to come to a creative agreement that might not be possible when going through the legal system. It also saves you money in court costs and many other expenses.
Another benefit of ADR is that it can help preserve business relationships. Typically, you can achieve less contentious results with the help of a mediator. That’s important if there are confidentiality issues you’re worried about.
Focus on Communication
Sometimes, going to court may be inevitable. If that’s the case, then having efficient case management and clear communication can make a difference. You want to give your legal team as much information as possible and all of the documentation necessary to put on a strong defense.
Calculating the True Cost of Litigation
It’s important to realize that business litigation can end up costing you significantly — even if you win. If the court rules on your behalf, you expect the other party to pay your legal fees, but that’s not always what happens. It can be difficult to collect the amount they owe you, and that means continuing to employ lawyers to pursue the issue.
If the other party declares bankruptcy, it can be even more challenging to obtain what the court ordered them to pay. Throughout it all, you continue footing the bill.
How Business Lawyers Can Help
If you’re facing a business dispute, having a lawyer helping you makes it easier not only to fight for your business interests but also to understand what your options are. At Weisblatt Law Firm, we strive to help you avoid litigation by encouraging negotiations and alternative dispute resolution strategies.
We can provide contract review services to further prevent disputes from arising. This step can help identify potential issues that may arise from ambiguous wording, unclear clauses, and many other common contract pitfalls.
There are some instances when the only solution is litigation, and if that’s the case, we can fight tirelessly to protect your business. We can investigate your case thoroughly and gather the evidence that can make a difference in court. Because we have a vast network of professionals we work with, we can also provide expert witnesses who can strengthen your case with their experienced testimonies.
Protect Your Business’s Bottom Line with Weisblatt Law Firm
Consult Our Dedicated Litigation Lawyers
You have worked hard to build your business. Disputes have direct and indirect costs that can impact what you’ve created, potentially putting the company’s reputation at risk. If you’re dealing with threats of litigation or you want to make sure that any existing disputes don’t escalate, look no further than the seasoned team at Weisblatt Law Firm.
We have decades of experience and a fierce dedication to our clients. You can learn more about what services we provide through a free over-the-phone consultation.
Don’t wait to protect your company’s bottom line. Contact Weisblatt Law Firm at (713) 666-1981 to speak with a skilled business litigation lawyer today.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
