The benefits of settling business disputes out of court
If you own a business in the Tampa-St. Petersburg area, it is important to be aware of the potential for lawsuits. Litigation is a common occurrence in the business community, whether it involves being sued by a customer, suing a vendor, or facing a dispute with a partner.
While going to trial is always a possibility, most lawsuits are resolved outside of court. While it is important for your attorney to be prepared for court, there are several benefits to settling business disputes through negotiation, including:
1. Cost savings: Lawsuits can be expensive, and your business likely has a limited legal budget. Resolving the dispute quickly and fairly can save your business money.
2. Time efficiency: Litigation takes up a significant amount of time, which could be better spent on running your business. Reaching a settlement allows you to focus on your company without the distraction of ongoing legal proceedings.
3. Privacy: Lawsuits become part of the public record, meaning that anyone can access the information submitted to the court. Settling out of court or using alternative dispute resolution methods like mediation or arbitration can help maintain your business’ privacy and keep sensitive information confidential.
4. Control: While you may not have complete control over the outcome of an out-of-court settlement, you have more influence compared to a judge or jury determining liability. Many business owners feel a greater sense of control when they participate in mediation or direct negotiations.
Unless the other party is unwilling to negotiate in good faith or it seems impossible to settle the matter outside of court, settling should be considered as an option in any business litigation matter.”