Post written by
Forbes Legal Council
Experienced chief legal officers & law firm partners from Forbes Legal Council offer firsthand insights on legal issues.
It’s a nightmare every business owner dreads: Someone is threatening your business with a lawsuit. But before you panic or try to fight the battle on your own, there are some important next steps to take that could mean the difference between winning and losing (and potentially save you thousands of dollars, too).
From consulting with your lawyer to gathering necessary documentation quickly, six legal experts and executives from Forbes Legal Council discuss the best ways to protect yourself and your business.
From top left to right: David Nied, Doug Bend, Matthew Moisan, Matthew Digesti, Rachel Rodgers, Anthony Johnson. Photos courtesy of the individual member.
1. Seek Counsel
If you don’t already have a good business litigator in your quiver, find one as soon as possible. A good business litigator can help you determine the best way to respond to the threat, which could range from amicable negotiation to aggressive defense of the potential lawsuit. He or she can also help you avoid doing or saying things that could come back to haunt you in the courtroom later. – David Nied, Ad Astra Law Group, LLP
2. Think Ahead Like a Chess Match
Business litigation is like a chess match. You need to be thinking two or three moves ahead to have the best possible outcome. Consult with a business litigator before you need them to make sure you are making moves now that won’t hurt your case if the other party follows through with their threats to litigate. – Doug Bend, Bend Law Group, P.C.
3. Use Common Sense
Use common sense; respond calmly and immediately call your lawyer. The absolute worst thing that you can do is get involved in a shouting match. – Matthew Moisan,Moisan Legal P.C.
4. Quickly Gather and Protect Key Information
Our company initially responds to litigation threats with a four-step approach. First, create a file that contains copies of key documents. Second, speak with employees who have personal knowledge of the dispute. Third, draft a factual timeline. Fourth, draft a memo analyzing potential liability and financial exposure. Executives can then make an informed decision on appropriate next steps. – Matthew Digesti, Bristlecone Holdings
