Tips for Avoiding Litigation

"Litigation is merely one tool used to attain specific goals, which may be achieved more efficiently by other means...and it is sometimes the best approach for resolving a dispute. For purposes of this article, though, we discuss some of the common reasons why disputes often result in litigation, which, had they been properly managed, could have been avoided...

Depending on one's perspective, any number of reasons can be listed to support an argument that litigation should be avoided. In this article, we list the five reasons...

1. Cost Control...
2. Risk Avoidance...
3. Distraction...
4. Damage to Business Relationships...
5. Public Relations...

Why Does Litigation Happen?

Some of the manageable reasons...

1. Stubbornness/Pride
2. Lack of Knowledge/Understanding
3. Passion/Emotions
4. Failure to Communicate
5. Greed

Five Common Sense Ways to Avoid Litigation

1. [Follow] The Golden Rule...
2. Improve Communications...
3. Analyze your company's historic performance to determine what activities typically result in getting you into litigation
4. Rapidly respond to potentially threatening developments in their earliest stages (i.e., don't sit on it
5. Incorporate risk shifting and litigation alternative provisions into your business practices

Many business disputes will be either directly or indirectly related to contractual instruments. Hence, one powerful way to avoid litigation is to include litigation avoidance provisions within your contractual instruments. [Numerous examples of such provisions are provided in the article]

Read much more in this article by Brit T. Brown.

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