If another business has wronged yours, you may be weighing the option of taking them to court. This could be a winning decision or a costly mistake, depending on the circumstances at play. Here are five questions you should consider before taking the leap into litigation.
Is your case strong?
Even if you feel you have been severely mistreated by another business, you need a legal cause of action to get results in court. The elements of your claim must be provable and backed by facts and law.
Have you exhausted other options?
Have you approached the other party and sought an amicable resolution to this dispute? There are two sides to every argument, and they may give you an explanation that leaves you at least open to negotiation. You may need to give some ground, but the cost of a compromise may seem very attractive when compared to the cost of a courtroom battle.
Can they pay?
If the business you are thinking about suing is failing or has few if any assets, you have to ask yourself if the time and expense of a lawsuit is worth it. This is where a prudent cost-benefit analysis comes into play. Even if your claim has strong merit, you can’t squeeze blood from a turnip, as the saying goes. Is it worth it to sue if your only victory is a moral one?
Are you exposed?
Suing a company can expose you to the possibility of a countersuit. Carefully consider the strength of your own position before escalating. Look at the dispute from the other party’s point of view and ask yourself if they have any potential claims against you.
Are you prepared to go the distance?
Taking the step of suing a business may result in a quick and favorable settlement, but there is a chance for this dispute to develop into a long-term affair. It may very well be worth it to fight it out till the end, but you need to gauge your willingness to go the distance before, not after, you take the very first step.