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What should you consider before a business lawsuit?

Before filing a lawsuit, or being the recipient of one, there are a few different things one must think about. If someone files an allegation, take it seriously. Even if the allegations are false, not taking the case seriously could give them a foothold to actually pursue a successful claim.

When heading to court, know that there are costs involved. While it's important to be aware of the budget constraints of filing a lawsuit, think of it this way: Is it worth the cost of the lawsuit to not have the problem in the future, or is it better to eat the cost of the problem and avoid the lawsuit?

When trying to hide anything illegal or less-than-moral with your company, a lawsuit will likely expose those truths. It's important to be honest with an attorney, so any information that might be embarrassing or incriminating can be discussed. By talking about the issues, one can work on a plan to successfully defend their side of the story in a lawsuit or pursue the claim they want to file despite having their own skeletons in the closet.

Most lawsuits are settled out of court, so be aware that heading to trial is something the court system is designed to make one reconsider. If it's possible to settle, it's likely going to save money, but settling may also result in a smaller payout. Consider the potential for a bigger payday and what it might cost in time, money and effort to get to that point. After considering these factors and deciding if the lawsuit is worth the time, that's when it would be wise to reach out to an attorney.

Source: FindLaw, "Ten Things to Think About: Lawsuits," accessed Sep. 09, 2016

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