Savvy business owners know that avoiding litigation when possible is the smartest choice. Litigation is extremely expensive, frustrating and it can ruin valuable business relationships. Not to mention, it is much wiser to spend time on building your business as compared to tied up in the courts.
Fortunately, there are some easy steps that you can take to lessen the overall likelihood of litigation. According to Findlaw, you should always follow the “golden rule,” have a robust review procedure in place and incorporate litigation avoidance in your contracts.
Understanding the golden rule
The golden rule is essentially to treat others the way you would like them to treat you. Before launching into accusations or litigation, take a step back and try to see it from the perspective of the other party. Looking for common ground can help avoid a lot of arguments before they begin.
Robust review procedures can also help avoid litigation. Useful review procedures may include creating a reporting procedure for potential risks and having procedures that outline the follow up on those reports. It is also intelligent to anticipate and account for potential disputes and legal questions before they become pertinent.
Put it in writing
Again, having a plan in place to avoid litigation does work. Litigation avoidance provisions you can put in your contracts include mandatory mediation provisions, agreeing in advance to allow expert outside opinions to influence decision-making and a robust procedure for fact-finding.
You can also include risk shifting avoidance provisions in your contractual language as well. Examples of these include exculpatory agreements, disclaimers and waivers and specific insurance provisions if necessary. Contact us for more information regarding how to avoid litigation.
