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Knowing When Your Business Should Pursue Litigation

Matthew R Harris Law P.C. Feb. 27, 2023

client customer signing contract and discussing business with legal consultantsIn the world of business, disputes are inevitable. When disagreements arise, it's important to have a plan in place to ensure that the dispute is resolved as quickly and efficiently as possible. 

However, many business owners do not know when to pursue litigation instead of trying to resolve a dispute through alternative dispute resolution options. If this sounds like your situation, contact Matthew R Harris Law P.C., a business litigation law firm in Toronto, Ontario. Lawyer Matthew Harris helps business owners resolve disputes of all sizes and varieties in other parts of Ontario, including Ottawa, Hamilton, and London.  

Common Issues That Lead to Business Litigation  

Below are six common issues that often result in business litigation: 

  • Breach of contract 

  • Employment issues 

  • Intellectual property infringement 

  • Misappropriation of trade secrets 

  • Professional negligence 

  • Negligence torts  

Business litigation can have serious consequences for companies involved in disputes due to any of the above-mentioned issues. However, disputes do not necessarily need to result in litigation as there may be alternative dispute resolution options.  

Options for Resolving Business Disputes  

Generally, there are three options for resolving business disputes:  

  1. Mediation. Mediation is often the first step when attempting to resolve a business dispute. It involves both parties coming together with an impartial third party – usually a mediator – who will help them work through their differences and come to an agreement.  

  1. Negotiation. Sometimes, simply discussing the problem can be enough to resolve a business dispute without the need for mediation or litigation. This is known as negotiation and involves both parties working together in order to come up with an acceptable solution that works for everyone involved.  

  1. Litigation. If all else fails and you're unable to reach an agreement through mediation or negotiation, then you may need to consider taking legal action against the other party. This process is known as litigation.  

Every business should have strategies in place for resolving disputes before they arise. If you are not sure how to resolve yours, contact an experienced lawyer to explore your legal options.  

Knowing When to Pursue Litigation  

Before making the decision to pursue litigation, you need to be sure that litigation is the best way to move forward in your case. If any of the following applies, it may be time to pursue litigation.  

No Substantial Progress Has Been Made in Negotiations  

Negotiation is often a preferable route for resolving disputes because it can be much faster and cheaper than litigation. However, if your negotiation efforts have not yielded substantial progress and you believe that proceeding with litigation will bring about a more desirable outcome, then it may be time to consider pursuing litigation.   

The Opposing Party Refuses to Cooperate  

If the opposing party refuses to cooperate or respond at all during negotiations, then they clearly do not want to come to an agreement outside of court. In such cases, it makes sense for you to consider filing a lawsuit as soon as possible in order to protect your interests.  

The Benefits of Litigation Outweigh the Costs and Potential Risks  

Before pursuing litigation, you should always take into account the potential costs and risks associated with doing so. If the potential benefits outweigh these potential costs and risks, then pursuing litigation may be your best course of action. For instance, if you are confident that you will win your case in court and that the outcome would result in considerable financial gain for your business, then taking legal action may make sense.  

Your Lawyer Says Pursuing Litigation Is the Right Thing to Do  

Ultimately, if you are unsure whether pursuing litigation is right for your situation, you should consult with a lawyer who has experience dealing with similar cases. Your lawyer will be able to provide valuable insight into which approach would yield the most favorable results for your business. They can also help assess any potential risks associated with going through with a lawsuit and advise on how best to proceed in order to minimize those risks while maximizing the chances of success in court.   

Protect Everything You’ve Worked For  

Litigation can be an effective way for businesses to resolve disputes. It may seem like a drastic step, but in some cases, it might be the best option available. Speak with Lawyer Matthew Harris to discuss your particular situation and determine your best course of action to protect everything you’ve worked so hard for. Reach out for help today to get a consultation.