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24
T H E P R I M E R U S P A R A D I G M
Seven Things to Consider Before Filing a Lawsuit
Here are three common scenarios
encountered by small and medium-sized
businesses:
·
Your company entered into a
consulting agreement with Company
XYZ for you to perform a complete
marketing analysis, re-branding
campaign and build a website, but
Company XYZ refuses to pay the full
amount on the contract because it
claims your services did not deliver
the results you promised.
·
Your former top salesman was
recently hired by your main
competitor, and you have begun to
suspect that he may be giving your
competitor some of your confidential
business information and soliciting
his former customers, in violation of
his non-compete and non-disclosure
agreement.
·
For the last several months, your
business partner has been making
extravagant personal purchases using
company money. You have repeatedly
asked to see the company's books,
but he refuses or provides excuses on
why they are not available.
What do you do if you are thinking
of suing someone? Many lawsuits
are necessary. A large number are
not. Sometimes suits are necessary
to preserve rights, such as stopping
someone from infringing on your
copyright, stealing your business
ideas and trade secrets, or escaping
with your money. Some disputes can
be resolved before litigation through
mediation or even a letter from an
attorney, while on some occasions, there
is just a misunderstanding between the
parties. Even when neither is the case,
it is important to understand all that
is involved before you take the step of
filing a lawsuit. These are seven things to
consider before deciding whether to file
a lawsuit.
1. Cost
This is obviously the number one
concern clients have, and the number
one question attorneys are asked by
clients and potential clients: "How much
is this going to cost me?" Litigation is
incredibly unpredictable, because you
cannot control what the other side does
or how the court rules. Litigation can
also be very expensive. As business
transactions become more complex,
and with the heavy reliance on email,
even relatively simple cases can involve
hundreds or thousands of documents
and emails, all of which will need to
be reviewed by your attorney. A typical
business dispute can cost tens or even
hundreds of thousands of dollars to
litigate from the filing of the complaint
through a trial and appeal.
2. Likelihood of Success
Notwithstanding their egos, attorneys do
not actually have divine powers to see the
future or control events or the actions of
the other side or the court. There are no
guarantees in litigation, and any attorney
who tells you that he or she can guarantee
a particular result or outcome should be
avoided. Nevertheless, an experienced
and knowledgeable attorney can and
North America ­ United States
Michael A. Boutros is a senior associate at Krevolin & Horst.
He handles a wide variety of business and complex litigation
in the areas of business torts, shareholder disputes, restrictive
covenants (including non-compete, non-solicit and non-disclosure
agreements), contract, intellectual property (including copyright
and trademark protection), corporate governance, securities, trade
secrets and appeals.
Krevolin & Horst, LLC
1201 West Peachtree Street
One Atlantic Center, Suite 3250
Atlanta, Georgia 30309
404.585.3657 Phone
404.888.9577 Fax
boutros@khlawfirm.com
khlawfirm.com
Michael A. Boutros