Causes-of-Litigation

The Many Causes of Litigation

When you own or run a business, litigation is one of the many hazards that you may face.  It is essential to consult with your commercial lawyers for sound legal advice and find out what steps are needed to resolve all kinds of disputes quickly and prevent litigation that could be the ruination of your business. Taking out insurance to cover litigation is also essential, otherwise you could find yourself bankrupt.

Here are some of the causes of litigation that businesses face and tips to prevent it: –

  • Accidental or intentional injury of a client or customer on the business premises. Prevention includes ensuring your workplace is safe for both customers and employees. Prompt dispute resolution practices should be instigated at the first sign of trouble.
  • Accidental injury of an employee during the pursuit of his or her employment. Workplace injuries are a fact of life. You can help prevent them by adopting safe practices and training staff to do their work safely.
  • Intentional injury by another worker on the premises. Another reason for dispute resolution strategies.
  • Defamation of a client or an employee by the company. Watch what you say. People can get irritated and say things they don’t mean. People can become offended and sue.
  • Sexual harassment by an employee or manager to an employee. Training staff how to behave properly should not be necessary – but it is.
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Common Sense Tips to Avoid Litigation in Business

Litigation is every business’s worst nightmare. Legal Advice will tell you that not only is it time consuming and expensive, the trauma of it all can cause you to feel ill and affect your ability to make good business decisions, so business growth will be hindered. It can also affect employee morale and the reputation of your business. That can cause a lot of loss and take years to recover from.

So how do you avoid litigation? Here are some common sense tips to help you.

  • Every agreement you have with anyone to do with the business should be put into writing. Both parties should read and sign the agreement – in fact, a legal agreement should be drawn up by lawyers. Such agreements can be between suppliers, customers, business partners and employees. Without an agreement the terms discussed and agreed on can easily be forgotten or deliberately not adhered to and you have no way of forcing the issue.
  • As a business owner it is up to you to read all the agreements and ensure that the terms are adhered to by all parties. If you don’t know what these terms are, you won’t know whether they are being kept or not. You can easily be ripped off by a less than honest party who knows you haven’t read the terms of an agreement.