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Top 5 Ways Businesses Can Avoid Litigation

by | Sep 15, 2018 | Commercial Real Estate


If your company becomes non-compliant to the law you could find yourself in the midst of a long and expensive trial. As almost any experienced business attorney would agree, the best method of dealing with this type of business issue is to focus on prevention. Prevention is always better than searching for a cure after the fact. If you’d like to avoid legal problems for your business, consider these tips.

5 Tips on Avoiding Litigation for Your Business:

  1. Get Educated: Know the laws and statutes that affect your company. Revisit discrimination and harassment laws so you can avoid potential lawsuits.
  2. Liability Insurance: Comply with all minimum coverage liability insurance requirements.
  3. Background Checks: Thoroughly checkout (through background checks) lending partners, employees, associates, etc.
  4. Arbitration Agreement: Put an agreement in place that you follow when issues arise. This saves you from complications during future disputes.
  5. Compliance Committee: Establish a group within your company to monitor company actions and double check that you are acting in compliance with laws affecting your company.
  6. Have Counsel on Hand: Your company should have an attorney at its disposal. Have your attorney go over any contracts of any kind that affect your business.

If, in spite of your best efforts, your company still faces a lawsuit, consider out of court options that could help you resolve the dispute. Before taking the dispute to court, consider arbitration or alternative dispute resolution (ADR). Arbitration is simply both opposing parties purposefully attempting to come to a peaceful solution outside of the courtroom. Resolution through mediation or binding arbitration is termed alternative dispute resolution. Using this option, both parties could have full control over the outcome. If nothing else works, you ay have to take the issue to court. This doesn’t always necessarily mean that you will have to go to trial, but it does typically settle the matter once and for all.

If you need someone experienced in dispute resolution for your company, contact the southern California business law experts at The Law Office of the Law Office of Ernesto Aldover.