Home > business, business law, litigation, Uncategorized > Business Owners: Understand the Real Cost of Litigation.

Business Owners: Understand the Real Cost of Litigation.

This morning I was reading a legal blog  “Above the Law” – the article was written by an attorney named John Balestriere 

The article was titled “The Un-Sweet Spot Of Litigation

This article provides very practical advice for my clients – small/closely-held businesses.

John makes a great point – the court system is impractical for “most disputes”.  As he writes:

The problem is the middle range, and that is the place that perhaps encompasses most disputes of most Americans. If your damages are too high to be in small claims court, but not over a million and “only” $50,000 or $300,000 or “only” about your lower-paying job, then litigation likely doesn’t make sense

This article reminds me of the conversation that I have with any client of mine entering litigation.  In any such conversation, my clients are typically hearing similar words of advice from me:

“Make a business decision.”

“Don’t throw good money after bad.”

“Let’s find a cost-effective solution.”

You may ask, what are cost-effective solutions?

At an extreme, as John points out in his article, simply “walk away”.

Other cost-effective solutions include mediation, or arbitration. 

Some of the ways business owners can be pro-active to utilize cost-effective solutions to resolve disputes is to include mediation/arbitration clauses in their Terms and Conditions

Questions? Comments?

e-mail: Jeshua@dwlawpc.com


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