From the attorney's web page that Arnold posted .Thank you Arnold
Why Should I Worry About Business Litigation?
If you run a business, chances are you either already are confronted with business litigation or will be in the near future. Almost all business people confront litigation or the threat of litigation in the course of their business, whether they are Fortune 500, small or medium size companies, closely-held or family owned businesses, internet start-ups or individual entrepreneurs. Even though you may have protected your personal assets by forming a corporation or LLC, litigation may put your enterprise at risk.
When you are threatened with litigation, accept the fact that it will probably cost you money to solve the problem, even if you are right. Ignoring the problem won’t make it go away, especially if you have been served with court papers or a notice or demand pursuant to a contract. And, failure to respond in a timely manner may cause you to lose your legal rights. Nothing can prevent you from being sued.
What Can I do to Reduce my Risk?
Be proactive and anticipate that problems may arise. Retain a transactional attorney to assist you in drafting or reviewing contracts. Discuss your business with a qualified business insurance broker and ensure that you have the appropriate type and amount of insurance. Do not be afraid of a legal evaluation of a problem, usually that is not expensive. Then you can decide how much more legal work is justified.
Read all contracts carefully. If you have any contractual relationship with another party, read the contract carefully and understand your rights and obligations under the contract. Sometimes, a third party may be liable under your contract and be required to defend and indemnify you from a claim, lawsuit or damages. If this is the case, be sure to fully understand the third party's rights and obligations under the contract, as well.
If litigation is eminent, see if you can work it out. You may wish to try to work it out with your adversary prior to hiring counsel. Meeting your adversary half way may save you money and avert all out legal warfare. But remember, "Anything you say can and will be used against you in a court of law." In the event you can't work out your problem, assume that anything you say or any letter you write will later be presented to a court by your adversary. If you were able to work it out, it would probably be in your best interest to hire an attorney to draft a settlement agreement to ensure that the matter is properly resolved. Finally, remember that if you are the plaintiff, your chance of recovering monetary damages is only as good as your adversary's assets. Many judgment debtors don't voluntarily pay the judgment... you may have to find and forcibly take their assets (through the use of a marshal or sheriff) after the litigation has concluded, which may be more hassle than it's worth especially if your adversary doesn't have many assets.
Check out your insurance policy and contact your broker. Litigation regarding the matter at hand may be covered under your policy or under insurance that a third party was required to obtain on your behalf. Many contracts require one of the contracting parties to either provide insurance or list the other party as an additional insured. In the event you are covered, promptly notify the insurer in the manner required under the provisions of your policy. Many times the insurance company will hire an attorney to defend you.
Consult with an attorney. Most attorneys offer free initial consultations. Don't be afraid to ask the attorney questions and get a cost estimate. Just remember that litigation costs fluctuate and are very difficult to estimate. Keep the following questions in mind when selecting an attorney:
Is the attorney qualified in the field of law you will be litigating?
Are you comfortable with the attorney's approach?
Does he or she consider solutions without resorting to litigation such as mediation or arbitration?
How is the attorney's fee structured?
Normally, attorney fees are either based on a contingency agreement or on an hourly rate. In a typical contingency agreement, the client does not pay the attorney up front. The attorney is only paid if there is recovery, and the fee is based upon a percentage of the final award (normally 33%-40%). The contingency fee can work out well for Internet start-ups, individual entrepreneurs or small businesses that are unable to afford to assert their legal rights against large corporations that appear to have an endless amount of funds to pay legal expenses. However, be sure you understand how expenses (such as copying, depositions, court costs, etc.) will be handled. Hourly fees are when the client pays the attorney his or her hourly billing rate plus expenses. Unlike a contingency fee arrangement, if the client pays the hourly rate, the entire award belongs to the client once litigation is successfully concluded. Whatever fee agreement you make with the attorney, be sure to get it in writing before proceeding!
Business litigation or the threat of litigation is something that almost all businesses confront in the course of their business. But, you do not have to give up your legal rights. While the advice in this article help inform you of basic issues relating to business litigation, nothing presented here is a substitute for qualified legal advice. Consult with an attorney that is qualified to advise and potentially represent you in your specific case.
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