Small businesses are popping up every day, but many won’t survive. Financial woes, such as legal problems, can be a big contributor to failure. In fact, 45 percent of them are tied up in some type of litigation and the average liability suit costs at least $54,000. Here’s how to cope if your small business is targeted.
Types of Litigation
Many business disputes can be settled through mediation, negotiation or arbitration. However, some cases still end up in the courtroom. Here are the most common types of business litigation.
Breach of Contract: This occurs when one party fails to fulfill its contractual obligations.
Intellectual Property: These disputes involve copyrights, patents, trademarks and trade secrets.
Partnership Disputes: They pop up when partners disagree over how to divide profits or manage the business.
Business Torts: Wrongful acts that cause harm to a business such as fraud, defamation, loss of profits and unfair competition.
Employment Disputes: Examples include allegations of wrongful termination, discrimination, wages and hours, misclassification and harassment.
How to Prepare
If your business is hit with a lawsuit, here are some tips to help you prepare.
- Gather all of the evidence you can to present in court. Focus on written contracts, photos of damage and telltale videos.
- Hire an experienced commercial litigation attorney.
- Make sure all legal documents are up-to-date.
- Do not create new documents as evidence.
- Limit interaction with the opposing party. Keep communications brief and document them.
- Contact your insurance company.
The litigation attorneys at the Law Offices of Todd Cushner and Associates understand the judicial system. We represent clients in many areas, including employment litigation matters, real estate, civil rights and breach of contract claims. Let our experienced attorneys fight your litigation battle. Call us at 914-600-5502 to get started.
