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How to handle litigation against another business entity

On Behalf of | Sep 12, 2023 | Commercial Law and Litigation

In the world of business, disagreements can quickly arise between entities. It is best to find effective ways to resolve these disputes and maintain a healthy professional environment.

Even if litigation is already underway, you can benefit by handling the matter calmly and rationally. The best approaches during business disputes are those that bring you closer to a favorable outcome for both your business and your reputation.

Know your rights and obligations

Familiarize yourself with the legal aspects related to the dispute. Understand your rights and obligations as well as those of the other company. This knowledge can help you make informed decisions moving forward.

Documentation is key

Maintain a record of all interactions and agreements between the two entities. This includes emails, letters and any other forms of communication. Well-documented evidence will greatly enhance your position when a dispute goes to court.

Alternative dispute resolutions

Even when litigation between business entities seems inevitable, it may not be too late to explore alternative resolution methods. Mediation is often less adversarial and time-consuming than formal legal proceedings. Arbitration is another alternative to traditional litigation. It involves a neutral arbitrator who reviews the case and makes a binding decision. It can be another quicker and more private way to resolve disputes.

Research suggests that 65% of startups fail because of conflict between co-founders, to say nothing of the damage that a conflict with another entity might cause. Before resorting to outright litigation, examine any existing contracts or agreements between your business and the other party. These documents might contain clauses regarding amicable dispute resolution mechanisms that you can follow.  Properly prepared agreements should always include the method for dispute resolution.