Disagreements are inevitable in virtually any business relationship. Although many conflicting viewpoints relate to minor details, some actions can have a devastatingly costly effect on a business.
When conflict arises due to disputes about a breach of contract, restrictive covenant, interference with business or other business issue, a lawsuit may arise. Parties often reach a settlement agreement outside of the courtroom. However, how do you decide whether to settle or move forward with litigation?
What’s the best way to resolve a dispute?
Depending on your situation, the cost, energy and time dedicated to protecting your interests before a judge may be worthwhile. At the same time, you might determine that reaching a compromise is best.
Your decision may depend on factors such as:
- There is no way to foresee whether litigation will end with the favorable results you desire, but a serious matter may be worth the risk. The livelihood of your business or your reputation may be on the line, meaning that finding an experienced attorney to represent you in court will be important.
- A trial can be lengthy. In some cases, you would be wise to consider the extent to which the involved legal fees might rival the potential damages.
- Focusing your time and energy on winning a lawsuit could detract from the growth of your business, while prolonged stress may negatively impact your health. Depending on your situation, you might want to give some serious thought to which course of action best aligns with your long-term goals.
Despite the potential concerns of litigation, you should never settle because of pressure. A court could require you to explore your options through an alternative dispute resolution process. However, legally, you cannot be threatened or coerced into settling.
Many considerations can factor into a commercial dispute. No matter the type of conflict that arises, exploring your options will help you make an informed decision about resolution.