A civil lawsuit begins when one entity (a company or individual) initiates a legal complaint against another entity, which could be for any number of reasons and such a lawsuit would be filed to obtain financial compensation to the claimant. If you owe a person money, this could lead to that person filing a lawsuit to claim the said money and whether guilty or innocent, you have to respond in the correct legal manner.
As you would expect, conflicts often arise among businesses. A contract details what both parties are responsible for and if one party feels the other has not lived up to their part of the agreement, they might file a lawsuit. Going to a reputable law firm for that offers the most reliable legal services for litigation dispute resolution would be the best solution, should your business receive notification of a lawsuit. A lawsuit can happen to any company and you might not even be at fault, yet you have to respond with legal representation.
A Lawsuit Can Bankrupt A Business
Imagine what would happen if your technician incorrectly installed an appliance that caused a fire that destroyed the customer’s home! There are special insurance policies to cover such claims – one is called ‘errors and omissions’ insurance and that covers professional mistakes and negligence. As a business owner, it is your job to minimise the risk to the business and lawsuits can easily be filed for a number of reasons.
An Unhappy Customer
If you are an unhappy customer, the first step would be to inform the supplier and if this does not resolve the issue, you should seek out legal advice and that might lead to a lawsuit. Of course, your lawyer would have to weigh up the case on its merits and if they think you have a strong case, litigation might be the best way forward. When you file a lawsuit, the correct procedure must be followed and failing to do this could lead to your lawsuit being thrown out.
If you lose a civil lawsuit, this could impact your credit score and that can seriously affect you in the future. Whether you are filing a lawsuit or on the receiving end of one, it is imperative that you seek out legal advice at the very outset, and finding a good law firm is easy with a Google search. If you lose a civil lawsuit and do not have the money to pay the claimant, your business might be closed, which would be a terrible shame.
Winning Is Everything
Whether you initiate the lawsuit or receive notification that someone has filed a lawsuit against you, winning is everything. In the event your lawyer thinks you will lose, this is the time to settle out of court. Losing could be disastrous and you might have to pay both sides legal costs. There are so many reasons a person or business might file a civil lawsuit. Should you ever decide to file a lawsuit, make sure that you have the best legal advice and this will vastly improve your chances of a favourable outcome.