Is Your Small Business Safe From Litigation?

Is Your Small Business Safe From Litigation?

Is Your Small Business Safe From Litigation?

Many small businesses fail after having to deal with litigation, which can be extremely costly. Larger companies, who have more resources and more protections,  are often aware of this and use the threat of a lawsuit to intimidate smaller businesses. However, a  lawsuit does not have to crush small business owners. Your company can develop strategies that will dramatically lower the chances of a lawsuit. Read below for more about the types of lawsuits that small business owners should be aware of – and how legal experts can help shield your company from liability.

Employment Disputes

Employees can sue their employers if their rights are violated in any way. Employees are protected against discrimination, harassment, and other unlawful workplace conduct by both federal and state regulations. Employees can also file a lawsuit for a contract dispute. The best way a business can protect itself is by establishing thorough employment agreements. These agreements can cover the basics of intellectual property, confidentiality agreements, stock options, and other complex legal issues.  Effective workplace policies can minimize the likelihood of discrimination, harassment, union-busting, or other prohibited actions.

Contract Disputes

Disputes can arise from all types of professional relationships. Customer, vendor, and employee contracts can all result in costly lawsuits. Contracts with investors or lenders can also lead to disagreements. Many of these issues may be avoided with a well-drafted contract, but sound business practices are also necessary. Missed deadlines, shipping faults, and other human errors can result in contract violations that could have been avoided. Your company’s risk of lawsuit can be dramatically reduced by combining good contracts and good policies. It’s also important not to be alarmed if a larger corporation threatens your company with a contract violation suit. This is a typical intimidation tactic, but just because something is declared a breach of contract does not mean it is. Hire a lawyer to examine your case and decide the best legal approach for your specific circumstances.

Intellectual property litigation

Intellectual property is the most precious asset for many small company owners in Northern California. It is critical to establish legal safeguards prior to the creation of intellectual property. During the research and development phase, an attorney can assist you in ensuring that your intellectual property is protected legally. A lawyer can also help you develop employment rules, confidentiality agreements, and license agreements to guarantee that your intellectual property is utilized as you intended. With good legal council, an IP dispute may be resolved without the need for expensive litigation.


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