What determines a winnable business lawsuit?
As a business owner, you’ll frequently have to make difficult choices. Choosing when to take legal action against someone is one of the hardest decisions for business owners to make. There are a number of factors to take into account when determining whether filing a case is the best course of action, regardless of whether you want to sue someone for defaming your business, violating your intellectual property, or breaking a contract.
Tracking Down The Defendant
Consider first how simple it will be to find the defendant before filing a lawsuit. It can be challenging to serve papers on someone if you don’t know their workplace or if they don’t have a fixed address. Process servers may charge for each unsuccessful attempt, drastically reducing any potential settlement you might receive from the case.
Estimated Payout
Consider the potential benefit if you win a case. Is the potential gain worth your time and effort? Think carefully about whether filing a lawsuit is worthwhile if your business has only experienced minor harm or it is difficult to prove your damages.
Actual Damages
You can examine the real losses your company has suffered with the help of your business attorney. For a lawsuit to be successful, there must have been real financial harm to your company, such as lost profits due to improper use of your intellectual property, monetary losses as a result of reputational harm, or theft. Your lawyer can assist you in determining how much restitution you might be able to seek.
Collecting Damages
Receiving a ruling is one thing; getting your dues is another. It might be difficult for you to get the money you’re entitled to if the defendants have few or no assets. Another reason why you should work with a lawyer is so they can research the defendant you intend to sue and determine whether they are judgment-proof.
Preventing Future Injury
A lawsuit might be worthwhile even if you are unable to collect on a judgment if it enables you to stop ongoing harm to your company. You may need to file a lawsuit in order to prevent problems in the future. For instance, if your trademark is not protected, you may ultimately lose it; as a result, you must file a lawsuit to stop the unauthorized use of your trademark. Furthermore, a ruling can make the offender realize that there are repercussions for their actions and persuade them to stop defaming your company, breaching contracts, or otherwise harming it.
