How Do You Know if Your Business is About to be Sued? 4 Potential Indicators

How Do You Know If Your Business Is About To Be Sued?

It’s not entirely common, but sometimes, a lawsuit against a business or business owner seems to almost fall out of the sky. More times than not, though, there are indications that a particular dispute a business is embroiled in is headed toward litigation. If you only recently became an entrepreneur, it might be more difficult to pick up on these signs than it would if you were a seasoned veteran. Below, we have outlined four clues that your company is the target of imminent litigation. 

  1. Communication is either ineffective or non-existent

    A robust conversation between two disputing parties means there is hope for the conflict to be resolved amicably. That chance, however, goes down to (near) zero if there is not even a dialogue to begin with. If the other party isn’t returning emails or phone calls, that could be a sign that they are preparing, with their counsel, to file a lawsuit against you. 

  2. The client with whom you have a dispute complains to a professional association or organization.

    If the other party with whom you are feuding is a client of yours and files a complaint with the Better Business Bureau or the agency that oversees your professional licensing, that could be a sign that the prospect of litigation is near. Sometimes, the other party simply lodges a complaint with a professional organization as a formality before filing suit.

  3. Your business has recently grown exponentially.

    Your company’s taking off can be a blessing and a burden. Failing to cultivate manageable growth can cause some important legal items to fall through the cracks. Additionally, companies with a relatively high profile often attract those who simply have a habit of filing frivolous lawsuits.

  4. You recently let an employee go who refused the offered severance package.

    While you are probably not required to offer severance to former employees, it can be a nice gesture. Former workers of yours who are planning to sue your company for wrongful termination may not take you up on the offer; many severance packages require the beneficiary to waive the right to sue for the termination. 

Conclusion

One of the cornerstones of Trembly Law Firm is to prevent legal disputes for businesses before they happen; the main way we accomplish this is by setting up and reviewing all of your company’s contracts and scrutinizing them for legal soundness. A proactive business owner is one who is most likely to enjoy long-term, sustained success. 

However, it just isn’t possible to prevent every lawsuit. When your company is served with papers, we are ready to jump in and provide you with effective legal representation that minimizes harm to you and your livelihood. Call us at 305-431-5678 to discuss your options with our team.  

Trembly Law

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