Saleel Sabnis, Esq.
October 18, 2020
Q: What is litigation/risk avoidance and how does it pertain to my business?
Lawsuits are inevitable when you are running a successful business. However, properly managing disputes is an excellent way to avoid litigation.
There are many reasons why a business should avoid litigation. Going to court is costly. Proceeding to trial is risky. When we speak of “litigation avoidance strategies” or generally about “risk avoidance,” we are speaking of simply ways in which a business can enhance its day-to day business practices to avoid potential conflicts with clients, customers, patients, employees, and other third parties. Litigation avoidance is frequently only thought of after a dispute arises but the best time to think about it is before costly and time consuming litigation is on the horizon. Cooper Levenson can help you lay out a plan for your business that addresses the key elements of litigation avoidance as outlined in this blog.
Q: What are some ways to engage in litigation avoidance?
- Reviewing contracts and have sound, clear language in place in those documents;
- Training supervisors and other managers to follow company protocol or any applicable “best practices;”
- Conducting regular management meetings;
- Having a comprehensive employee handbook;
- Advising employers on cost/benefit issues regarding litigation, mediation and settlement;
- Documenting in writing pertinent communications and operations as much as possible;
- Having a sound document preservation policy.
Q: How can litigation/risk avoidance provisions be incorporated into specific contractual instruments?
The attorneys at Cooper Levenson can counsel you on a host of contractual tools which may help address risk avoidance. These include:
- Cure provisions or other provisions which allow for a period of time after “notice” to allow one side to rectify any error or breach;Mandatory mediation provisions or some other agreement to engage in alternative dispute resolution (arbitration etc.);.
- Indemnity and hold harmless provisions;
- Exculpatory agreements;
- Additional insurance provisions;
- Release language;
- Disclaimer language;
- Waiver language.