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Resolutions For Business Disputes

Posted on August 16th, 2022

If you are a business owner, then there will always be a chance that you may face a lawsuit or have to initiate a suit against another party. As a business litigation lawyer Montana residents trust from Silverman Law Office, PLLC understands, a lawsuit can be an incredibly stressful period for everyone involved. The process of handling a lawsuit in itself can be tough on a business, particularly companies that are smaller and don’t have extra capital to spend. It is important to handle lawsuits with swift and tactful action and guidance from a dedicated legal team. 

What is the most common business dispute?

A breach of contract is one of the most common reasons that businesses face a lawsuit, and can arise from a verbal or written contract, lease, purchase and sale agreement, and more. A lawyer can review the situation and help you make decisions that consider the potential impact on your business. For instance, it is usually better to settle a lawsuit outside of court, as it saves all parties money not having to deal with court fees and other costs. Having to deal with a lawsuit can take away focus on operations, employee morale, production and services, and profit. 

What approaches to resolution may be used?

There are a few different types of resolution strategies that may be used in a business dispute, including arbitration, mediation, and litigation. Arbitration entails a third party reviewing the situation, hearing the sides of every party, and then making a choice that everyone must accept. By comparison, mediation is an attempt to resolve the dispute with guidance from a neutral party that helps everyone reach their own agreed upon solution. Lastly, litigation is when a judge, with or without a jury present, analyzes the dispute evidence then makes a decision that each party is bound by law to follow. 

Why is litigation expensive?

Depending on the nature of the lawsuit, litigation can be time-consuming and thus quite expensive. A conflict may be resolved quickly if all parties are committed to reaching a middle ground or compromise. But if one party is not cooperating in a way that must happen in order for resolution to occur, then a lawyer may have to prepare a business for court. Assessing the facts of the case and likelihood of the opposition to settle, instead of engaging in a lengthy trial, will be an influential factor in a resolution being found.

Business disputes can disrupt the flow and success of any company, no matter the size or current reputation. The last thing most business owners want to deal with is a serious legal issue. It is wise for business owners to take precautions now with support from a knowledgeable legal team, such as the lawyers from Silverman Law Office, PLLC, so they can prevent lawsuits from happening in the future. But if a lawsuit presents itself, it must be handled promptly and with diligence. 


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