Imagine that one of your vendors fails to deliver a product on time and that failure interrupts your supply chain, leading to lost profits and unhappy clients. Your first impulse might be to jump to legal action, but business lawsuits should always be weighed carefully. When is litigation the right choice? Here’s a closer look.
When it comes to resolving business disputes, litigation should generally be a last resort. Disputes can often be resolved more efficiently — and less expensively — through mediation or arbitration.
When Is Litigation the Right Choice?
If you’re not sure whether to pursue litigation, start by considering the following factors:
Seriousness of the Breach
Broadly speaking, there are two types of breach of contract: minor and material. Minor breaches are small violations that usually don’t interfere with the contract’s completion. By contrast, material breaches are major violations of some of the contract’s most important terms. It’s usually practical to sue only for material breaches.
Losses Suffered
Your total financial losses should be a central consideration in deciding whether to file a business lawsuit. Litigation is often costly, so it may not be worth it if you’ve experienced only minor losses or none at all.
Likelihood of Success
When you file a lawsuit, there’s always a risk that you won’t win. That risk will be amplified if you have a weak case or minimal evidence.
Exhaustion of Other Options
Given the time and expense required for litigation, it’s usually in your best interests to try to amicably resolve the situation first. You might also consider mediation before resorting to filing a lawsuit.
Statute of Limitations
In Texas, the statute of limitations for breach of contract disputes is generally four years. That means you have four years from the date of the breach to file a lawsuit and pursue damages.
The Litigation Process in Houston
Understanding Business Lawsuits
If you decide to take legal action, it’s a good idea to work with an experienced business lawyer. It will also be helpful to have a general understanding of how the process works. Here’s how your case will proceed:
Pleading Stage
The pleading stage is the first phase of the lawsuit. You (or your lawyer) must file all relevant court documents and then serve a copy of the suit to the defendant (the person or business you’re suing). They’ll have 20 days to respond with one of the following:
- Answer: The defendant can confirm or deny your claims and provide a defense.
- Answer With Counterclaim: The defendant can include a counterclaim alleging wrongdoing on your part.
- Motion to Dismiss: The defendant can ask the court to dismiss the lawsuit.
It’s possible that the person or business you serve may not respond by the deadline. If this happens, you may win the suit by default.
Discovery Stage
If the lawsuit continues, you’ll move on to the discovery phase. This is where each party gathers evidence and shares it with the other side. There are three ways lawyers obtain evidence in a civil case:
- Requesting Documents: Accessing documents to support your case
- Interrogatories: Drafting lists of written questions to be answered under oath
- Depositions: Conducting interviews under oath.
The parties will often agree to settle at this stage after seeing all available evidence.
Are you considering filing a breach of contract lawsuit? Call The Weisblatt Law Firm, PLLC, at (713) 666-1981 for a free case review.
Motions
Litigation can often be a drawn-out process. This is partially due to the many hearings and motions that must happen before a trial. One motion commonly made in civil lawsuits is the motion to compel discovery, a request for the court to compel the other side to hand over relevant information.
Trial
It’s often easiest if both sides can come to a settlement agreement on their own. If they can’t, however, the case will proceed to trial. Civil trials have a lot in common with criminal trials. Both sides must present evidence and argue their cases. They also can call and cross-examine witnesses.
Judgment and Appeal
The judge or jury will make a judgment at the end of your case. If you’re dissatisfied with it, you may be able to appeal the decision.
Costs and Considerations of Litigation
Before making up your mind to litigate a breach of contract, it’s important to take a moment to consider some of the potential costs.
Legal Fees
Hiring an attorney to represent you in a breach of contract lawsuit can be costly. Attorney fees can vary significantly from one lawyer to the next, so you should always ask before making a decision.
Court Costs
Attorney fees aren’t the only expenses associated with business litigation. Depending on the complexity of your case, the court costs may add up quickly. You’ll have to pay an initial filing fee, as well as a fee to have a notice of the suit served to the other party. You must also pay an additional fee if you want the case to be decided by a jury.
Time Commitment
Litigation doesn’t just cost money — it also costs time. A trial is almost never quick, and packed court schedules may make your case drag on longer than you anticipated.
Emotional Toll
Dealing with a lawsuit can be emotionally difficult, as well, if you’re the one who filed it. The stress of attending numerous court hearings, waiting for responses from the other party, and testifying in court can take a toll on your overall well-being.
Why Choose The Weisblatt Law Firm, PLLC, for Breach of Contract Litigation?
Your Guide to Business Disputes
When you decide to file a breach of contract lawsuit, you don’t need just any lawyer. You need an attorney with strong negotiation skills to settle with the other party, or at least make a good-faith effort to do so. However, you also need a legal professional who can fiercely defend you in the courtroom if your case goes to trial.
Attorney Andrew Weisblatt can do both. He has been practicing business law for more than 30 years, and in that time, he has represented businesses ranging from single-founder startups to multinational corporations. Mr. Weisblatt is prepared to identify your company’s needs and do whatever he can to meet them.
If you’re considering suing for breach of contract, contact The Weisblatt Law Firm, PLLC, at (713) 666-1981 to schedule a free phone consultation.
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
