In this blog we have detailed five signs that your company should pursue litigation in order to resolve its dispute. Please keep in mind that this blog is not intended as legal advice for your specific situation. Any potential for litigation should be reviewed by a knowledgeable business attorney, before you take any action. If you are interested in pursuing litigation to resolve your business dispute, please give us a call today.


1) Cost/Benefit in Your Favor


Every business owner should be very familiar with cost/benefit analysis. It is when you weigh the potential rewards of taking a particular action versus the potential or known costs of taking said action. As a business owner, you likely conduct cost/benefit analyses in your day-to-day business dealings, such as deciding on whether or not to invest in facility updates or deciding whether to lay-off employees. You also need to conduct such cost/benefit analyses in situations where you are considering litigating a dispute. Is what you stand to gain from litigation worth the cost it will take to achieve that gain? If not, such as in a dispute over a small sum of money, then litigation may not be worth the time, money, and effort.


2) You have a strong case


Before pursuing litigation, you need to be certain that you have a strong, clear case against the opposing party. Can the case be effectively proven in court? An experienced business attorney can analyze the evidence and advise you on your chances of winning your case. If you do not have a strong case, then you may want to seek out other remedies.


3) Alternative methods exhausted


Generally, litigation should only be considered when all other forms of dispute resolution have been exhausted. If negotiations towards a settlement have failed, and mediation and arbitration are not possible or have also failed, then it may signal that the time has come to litigate the case.


4) You are not concerned about details of the dispute going public


It is always important to remember that litigated courtroom proceedings are public record. If the nature of your dispute is sensitive, or you are concerned that you will be forced to share any information that you don’t want to become public knowledge as a result of the proceedings, then this may factor heavily into your cost/benefit analysis. Mediation or arbitration may be better suited for your situation if you want the nature and details of the dispute to remain private.


5) You will be able to collect a potential judgment


You may have an ironclad case that you are certain you will win, but will the award be worth pursuing if the defendant has no assets to collect? Litigation is only worthwhile in circumstances when you know the opposing party has the assets available to collect the judgment if you win.


The decision to litigate a dispute is not a choice that should ever be considered lightly. Always consult with an experienced attorney to help you decide on the most beneficial course of action for your company.