One of the last things you want to be faced with as a business owner/ manager are unexpected – and possibly large – litigation costs. On top of the rather expensive legal fees, you will also spend more time, as well as energy to manage the litigation strategy.
Moreover, you will also have to work with your employees in various ways – as the litigation takes a toll on their time – as well as defend the reputation of your company.
In short, managing the costs of business litigation is not something that can be easily accomplished. While most of us would want to avoid such a scenario at all costs, it’s sometimes impossible to do so.
This is why we thought of providing you with insight on six of the strategies that can help you manage the cost of business litigation!
1. Costs in Time and Resources – first of all, it is important to acknowledge the costs in time and resources that you/ your business will spend on litigation alone, as well as other related expenses. Naturally, your main goal is to minimize these costs.
2. Lawyer Awareness – the lawyers must be aware of all issues that are at stake, from commercial drivers, all the way through reputational and relational risks. A proper business litigation strategy should give special attention to most time-consuming tasks, such as dealing with the media, financiers, as well as collating documents.
3. Settlement over Court Proceedings – to manage the costs of business litigation fast and safe, your management team should focus on other settlement options, as they can be completed quicker when compared to court proceedings. It is also critical to quantify the costs and to have the last call in a settlement discussion. Do not let the opinions of your lawyers decide for you. Find anything that could be used as a bargaining tool, as it might be the key toward an out of court settlement.
4. Sharing Information – or, better put, making sure that your internal stakeholders are aware of the disruptions that are likely to affect the business before they actually happen. Giving them the opportunity to prepare for the disaster can do wonders in terms of minimizing the fallout.
5. Take Your Time – acknowledge that in the case of business litigation, it is usually a drawn-out process. Along the way, you may experience several modifications. In this respect, your plans and strategies to manage the business litigation should be looked over and reassessed, making sure they provide you with the best option. If you find flaws in any of your strategies, work on coming up with different plans.
6. Request Periodic Reports – even though the outside counsel will usually be against a set budget, always request updates on the expected litigation costs. For example, if you notice that multiple attorneys are planned to be brought, always ask if you can do anything to bring fewer attorneys and, thus, reduce the expenses.
The Bottom Line
Always keep in mind that business litigation comes with a lot of unexpected costs. However, these costs – besides diverting money – also influence your time and energy by simply taking them away from your business.
A good overall strategy to manage the cost of business litigation is to always look for alternatives to minimize the expenditures and settle the matters in other ways. Depending on your particular case, you might not want to stick to a single strategy for the entire duration of the litigation process.