Owning a business is a great way to make a living – you get to control the direction of the company and make your own hours. However, owning a business can also be a pain. The work never stops, and you have to handle all aspects of the business, from administrative to customer service to doing the manual labor. Though you need to be a jack-of-all-trades as a business owner, there is one aspect of your business you should leave to the professionals – litigation and legal issues.
There are two specific types of lawyers you may need when running a business – transactional attorneys and litigators.
Transactional Lawyers Do What?
- They do not go to court – they work behind the scenes doing all aspects of legal work that doesn’t require court appearances.
- They write contracts, do real estate closings, and prepare documents needed by the company.
- They may consult with litigation attorneys if needed.
- They advise business owners and managers how to follow the law.
Litigation Attorneys Do What?
- They represent people or companies who are suing or being sued.
- They help settle cases
- If cases can’t be settled through negotiation, mediation, or arbitration, they can go to court.
- They may charge hourly, but they may also charge a percentage of the award if the win (and not charge if they lose).
Issues That May Require Litigation
There are many reasons people sue and go to court. A company is vulnerable to all types of litigation. Having an experienced and knowledgeable attorney who is able to litigate a lawsuit is crucial for the long-term success of most businesses. Here are the most common issues handled by litigation attorneys:
- Contract issues. Though all business contracts are legally binding on all parties involved, disputes often arise. Both the wording and intent are open to interpretation, and because of this ambiguity, disputes can turn into lawsuits. Contract disputes can occur between two companies, a company and an employee, and a company and a customer or supplier.
- Class action lawsuits. If a product or service supplied by your company has affected a group of people, then you may be subject to a class action suit. Product liability, stock fraud, and other similar types of cases often become class action suits. Losing a class action lawsuit can ruin your company’s financial health and its reputation.
- Consumer complaints. Any time you sell a product or a service, it is subject to the opinions of the consumer. Any consumer complaint may create a legal action against your company. We all hear about frivolous lawsuits in the news, but even the most outrageous lawsuits can end up costing your company if you don’t have the proper defense.
Having an experienced litigation attorney in your corner is crucial to the long-term success of your business. Preventing and solving legal issues is something that most business owners can’t do by themselves.