Global Knowledge, Extensive Experience.

How can you decide if it’s time for litigation in a business dispute?

On Behalf of | Jun 25, 2024 | International Trade Litigation |

Litigation can be an incredibly effective tool when business disputes occur. You might just use the threat of it to encourage the other party to move back into line and fulfill their part of a contract. Or you might keep it in your back pocket, knowing that you can always turn to it to safeguard your interests if other approaches fail.

Deciding when to release the threat of litigation is not always easy. Here are a few questions you can use to determine when may be the right time to do so:

Do you need to act quickly to avoid the situation deteriorating

Let’s say someone has stolen one of your patents and is moving quickly toward releasing a copycat product that uses it. In a case like this, you might need to start litigation straight away, as if you wait too long, they will have already got their product to market and done untold damage to your business.

Do you want to keep working with the other party?

You’ve been dealing with a supplier that has expertise in its field that no one else can match. However, its late delivery is causing you massive problems and could result in you losing customers. You would be well within your rights to take legal action.

If, however, this is the only supplier who can give you what you need for the new product you have in mind, one with the potential to triple your current turnover, then you may need to exercise patience. Hitting it with a lawsuit now could jeopardize the prospect of you working together in the future, costing you much more than you could gain with this lawsuit.

Filing a lawsuit you are likely to lose is not good for business. Maybe you should wait to gather more evidence. Perhaps you have misunderstood the contract and do not have the legal high ground you thought. Getting help to understand your chances of winning as well as to understand everything else at play, is crucial. Only then can you decide if now is the time to go ahead with litigation, or whether it is better to wait or try an alternative.