Lawyers Perth | Best Ways to Prevent Litigation
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Best Ways to Prevent Litigation

Best Ways to Prevent Litigation

Litigation happens when a company is sued for some kind of loss or injury usually by their employee/s or customers . Most people have heard about class action lawsuits against companies whose product or working conditions harmed many people over a period of years.  There are many different kinds of lawsuits for different and various reasons, not all of which are bone fide.

How to prevent litigation

If you are a business owner it is in your own best interests to avoid the possibility of litigation by running a tight ship. In other words, make sure your business complies with all the safety standards set for your industry and address any problems in the workplace immediately rather than ignoring them. Harm can come to employees from sexual or mental abuse from other employees or from their  managers; it doesn’t have to be a problems with physical safety or the physical conditions they work under.

If you practice transparency and encourage employees to report problems such as abuse without fear of any repercussions, then  this also helps to prevent the likelihood of litigation against your company.  Always treating everyone fairly and ensuring they are heard will go a long way to prevent the problems of litigation and all the associated costs and emotional stress it will put you through.

Lawyers can help to ensure your business is complying with all the regulations in your industry, whatever they may be. Ignorance of them is no excuse when it comes to litigation, taxation or anything else in your business. You are expected to make yourself familiar with all that you must do and implement in your business. That is all part of running the business properly.

How to cope with litigation

However, sometimes litigation happens in spite of all you’ve done to prevent it. No one can foresee all the possibilities that can cause accidents, so it may happen that a staff member or even a client is injured on your property. Or if you advise clients in your business, maybe some advice you gave caused them loss instead of the expected profit.

  • Right at the beginning of your business, you need to take out insurance for this possibility. Litigation may cause you to lose customers or have to close down temporarily while you attend to legal matters.  You may lose key personal due to it. This will cause loss of income that can be hard to recover from without insurance.
  • Try to settle out of court through mediation processes. Going to court is even more costly and time consuming than mediation. And it is the same for the person who is suing you. They may not realise what the emotional and financial costs such a procedure will be. Pointing this out to them may encourage them to agree to mediation instead.