One of the harsh realities of business is that occasionally a client or customer may sue you. Here, lawyer Chris Jones explains how to best assist your lawyer in defending a claim made against your business.
One of the harsh realities of business is that occasionally a client or customer may sue you. Maybe a faulty product was sold, or negligent advice given, or there was a failure by the business to abide by the terms of a contract. More than likely, if your business is sued, you will require a lawyer. Here are five tips on how best to assist your lawyer in defending a claim that has been made against your business.
1. Provide clear instructions on what happened: The first place to start is by telling your lawyer all of the circumstances that gave rise to your business being sued in the first place, as best you can remember them. It may also be necessary for some of your staff members (those who are able to shed light on the relevant circumstances) also to meet with your lawyer so that they can take their instructions. This will enable your lawyer to ensure they are on top of all of the facts early and will be better placed to help you assess the strength of the other party’s claim against you.
2. Make available whatever documents your lawyer requires: In order to get a clear picture of what has happened and whether your business faces any concerns regarding liability, your lawyer will need copies of all documents you have that relate to exactly what happened. The best policy is to give your lawyer more information, rather than less. In addition, wherever possible, you should take copies of whatever documents you make available to your lawyer. This will assist you and mean that you do not need to keep coming back to your lawyer’s office to look at the documents if he or she has any further questions about them.
3. Don’t be afraid to ask your lawyer questions: It is very likely that you will have questions about what will happen now that your business is being sued. What is involved in preparing a defence? What sort of time commitment will you and your employees be required to make? Will there be a court hearing that you (or others in the business) will need to attend to give evidence? Or will there be a mediation? How long will the mediation run for? What is the procedure at a mediation? Your lawyer should be able to provide some answers to your questions and explain what your role in the process will need to be.
4. Be prepared and be flexible: Unfortunately, litigation is costly. There are lawyers' fees to pay (unless, for example, you have an insurance policy under which the insurance company may pay your legal bills), as well as the cost to the business of making your own staff and resources available to your lawyer when required. This may include making employees available to your lawyer to take their witness statements, or making yourself available to attend a mediation. Litigation is also time consuming, and you may even have to wait for the other side to make a move before you can respond. It pays, then, to be prepared and to be flexible.
5. Be helpful and cooperative with your lawyer: Litigation is often an uncertain and stressful time for businesses, so it makes good sense to take whatever steps you can to minimise the stress and uncertainty. One step to take is to be as helpful and cooperative with your lawyer as possible by following the tips above. Remember that your lawyer is being paid to do his or her best to assist you in the defence of the claim – but that is not to say that every case is able to be defended successfully. Your lawyer is best placed to assess the merits of the claim and advise you. Listen carefully to that advice. After all, you've paid for it!
Chris Jones is a member of the legal team at CBP Lawyers.
Follow @mybusinessau on Twitter for breaking stories throughout the day.
- ‘Don’t assume how employees will react to redundancy’
By Simon Rountree
- Customers behaving badly: ‘My time is worth more than yours’
By Adam Zuchetti
- What businesses can learn from Sir Roger Bannister
By Adam Zuchetti