More than 90% of all businesses will be involved in some type of litigation throughout the year. With this in mind, it is imperative that you have an understanding of exactly what it means to litigate a case and how to best protect yourself as well as your business. Unfortunately, litigation can be expensive. This is especially true if you are not already connected to a reputable business attorney. Even if it is a frivolous lawsuit, you will have to spend your money and time to fight it. It is best to be prepared for as many circumstances as possible. In this article, you will learn more about litigation, how to protect your business and when you should hire an attorney.

What is Litigation?

Litigation is the final legal action that you can take to bring a resolution to a legal disagreement between two or more parties. Well over 90% of all cases are settled before they reach the courtroom. If you are not well represented, you can easily find yourself in front of a judge. Some reasons that a business disagreement can lead to litigation include:

• Tort negligence
• Business divorce cases
• Fiduciary duty litigation
• Investment fraud
• Minority shareholder oppression
• Product liability issues
• Intellectual property disputes

This list is by no means all-encompassing. Business litigation attorneys in Dallas see all types of business litigation cases. Fortunately, if you are working with an experienced litigator your chances of favorably settling a case can greatly increase.

How to Protect Your Business

Obviously, having a great idea, strong business plan and excellent execution are all proactive ways to protect your business form potential mayhem. However, one of the most important steps is to ensure that you purchase liability insurance. In the case that someone has a legitimate reason to sue your business, this insurance can help to take some of the financial burden from you. Also, if you are a high net worth individual and in the process of getting married, it is recommended that you explore a prenuptial agreement.

Though it may seem counterintuitive, hiring an attorney can save you tons of money. They can help to protect you against frivolous lawsuits as well as aid you in crafting business policies. In most cases, they will cost you much less if you partner with one before a crisis occurs. These are just a few steps to help fortify your business. They will not guarantee the protection of your business, but will certainly help.

Why You Should Get an Attorney

Hiring an attorney has many advantages: drafting contracts, protection against litigation, mitigating damages, buying/selling a business, addressing stakeholder rights, etc. However, it is not recommended that you wait until something detrimental happens before you hire an attorney. Though they will probably be able to help, it will more than likely cost more money, take more time and be more complex if you wait to hire an attorney. Many business owners are tempted to handle their legal cases on their own. This is not a “winning” business strategy in most cases. It is also not a good idea to cut cost in the legal department. It can come back to haunt your personal finances as well as the health of your business.