How to Avoid a Lawsuit

Most people and businesses prefer avoiding lawsuits. Lawsuits can be costly, time consuming, and emotional while distracting from other personal and/or business demands and goals with no certain outcome. Some lawsuits can’t be avoided, particularly when dealing with customers or clients, contractors or vendors, or going into business with others.  But there are steps you can take to help avoid a lawsuit, or at least help minimize cost and exposure.    

1.     Don’t Rush

Don’t rush into a new engagement or project, or go into business with someone, without taking some effort to assess risks and resources and define expectations.  If you are embarking on a project that will cost you money, make sure you have the ability to pay.  If you are engaging someone to do a project, ask questions to explore if they are a good fit.  Certain industries also require compliance with specific laws and regulations.  For any engagement, project, or deal, communication is vital to clarify terms and define roles and expectations for the parties to avoid misunderstandings.    

2.     Don’t Shake Hands

Parties should execute written contracts or agreements.  The document should attempt to set forth agreed terms in a clear manner.  Having terms in writing will assist in resolving disagreements.  Written contracts can also assist the parties by clarifying where litigation will be filed (which can help minimize costs), whether the parties must first seek to negotiate or mediate a dispute prior to litigation, and whether a prevailing party will be entitled to recover attorneys’ fees and expenses from the other party.   

3.     Don’t Just Sign

The saying “an ounce of prevention is worth a pound of cure” certainly applies here.  It is much better to take the extra step of having an attorney review a contract or agreement prior to signing than dealing with a bigger problem down the road that could have been prevented or at least minimized.  An attorney can also assist in clarifying your legal rights and obligations in the relationship so you are informed in your actions moving forward.     

4.     Don’t Just Remember

During the course of the engagement, project, or deal, you should maintain records of relevant agreements, communications, and payments/costs in the event there are any disputes.   

If you would like assistance reviewing a contract or agreement, or need assistance with a dispute, please reach out to The Ewing Firm at melissa@theewingfirm.com or (404) 216-9962 for an initial consult.