FIVE WAYS By Aubrey Zuger & Abigale Griffin Photo provided by Fredrikson & Byron
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TO AVOID THE EXPENSE AND REPUTATION DAMAGE OF LITIGATION
s litigators, we represent clients in a wide range of complex business matters, ranging from contract and employment disputes to real estate and securities litigation. Since being involved in a lawsuit is time-consuming and expensive – not to mention bad for your reputation – we also counsel our clients on ways to avoid litigation.
Here are five tips that can help your business avoid litigation: 1. Have a Written Agreement in Place and Be Clear About Your Expectations Having a written agreement in place is a great way to protect your business from becoming involved in a legal proceeding. While oral agreements may be legally enforceable, they frequently prove to be problematic. The terms of an oral agreement are often ambiguous. As a result, oral agreements may lead to disputes between the parties because the responsibilities of each are unclear. The best way to make sure the expectations of each party are certain is by reducing your agreement to writing. Aubrey Zuger is a litigator who represents clients in a wide range of complex business matters. She can be reached at azuger@fredlaw.com.
2. Include Litigation Avoidance Provisions Within Your Written Agreement Along with having a written agreement, it is a good practice to consider including certain
litigation avoidance provisions within your agreement. Depending on your business, it may make sense to include a mediation or arbitration clause in your agreement. A mandatory mediation or arbitration clause may save your business time and money and, more importantly, may help your company resolve disputes privately and keep the conflict out of a public proceeding. Another provision you should consider including in your written agreement is a choice of forum clause. If a dispute does arise, a choice of forum clause allows you to choose where the legal proceeding will be held. At the very least, being able to control where your business will be litigating its conflicts will help save the company time and money. 3. Spot and Solve Problems Quickly An additional step you can take to help protect your business from becoming involved in a lawsuit is to respond quickly to problems when they do arise. Even the smallest of complaints can turn into a major issue if not dealt with properly. For a business, it is crucial that employees know how to identify issues that could potentially expose the company to liability and to make sure they report those problems to management. When management is notified of an issue, it should act quickly to address the
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