At Malyszek & Malyszek we know the importance of limiting risk. However an alarming number of companies neglect to ensure that they are effectively using the law to limit risk.
When dealing with government contract law, it is best to avoid litigation in most situations.
While we represent clients in all forms of business litigation, we also advise clients on ways to avoid litigation. Set forth below are simple ways businesses can shield against risk and lessen the likelihood of litigation:
• Read and understand everything before you sign anything
• Do business only with people you trust
• Document everything
• If it sounds too good to be true, it probably is
• Resolve disputes early
• Build a relationship with your lawyer
• If it is important, hire a professional
• Outsource that work for which you do not want to be held responsible
• Avoid sexual harassment claims
• Follow the 'Golden Rule': Treat others as you would have them treat you
• Avoid making promises you can’t keep
• Stay up-to-date on regulatory issues and changes in the law
Here are 5 reasons why you should avoid litigation:
1. Reducing risk. Risk will be severely lessened through (hopefully, fair) mediation rather than a dicey jury trial.
2. Limiting costs.
3. Adverse PR. Public relations and the company's reputation may be injured during litigation. This goes hand-in-hand with reducing risk, as it is preventing the risk of negative reputation claims.
4. Diversion of business. More time will be delegated to legal issues - not business development.
5. Deterioration of relationships within your business.
As a general rule, most experienced lawyers advise their business clients to avoid litigation if possible. The reasons are simple: litigation is costly, unpleasant, and uncertain. Most business people are better suited for their chosen businesses and not suited to serve as professional litigants. Sometimes initiating or defending a lawsuit is inevitable and one must choose a litigation attorney carefully.
Efforts like legal project management and alternative fee arrangements have helped inside counsel gain control over litigation costs. Still, the least expensive litigation is the litigation you avoid.
Inside counsel often have the opportunity to proactively guide their business clients in a manner that avoids litigation. Litigation-avoidance advice can help alleviate litigation even if it can’t be avoided. When that advice gets ignored, litigation is more likely to ensue—as is retention of outside counsel and the expenses they bring with them.
The reasons litigation occurs in government contracting is because of egos, ignorance of the topic, emotions, communication issues, and greed.
It is better still to avoid situations that could increase the possibility of a lawsuit at all. Thus, over 40 years of reflection, Malyszek & Malyszek has generalized certain principles that, if followed, should increase the possibility of succeeding in business without lawsuits or at least as few as possible.
With Malyszek & Malyszek, we hope to avoid litigation in almost all cases for these reasons. We will help smooth out the legal course of action and get you back on track for developing and optimizing your business.
Call us at (202)738-5077 for a free initial consultation to obtain more information on the importance of avoiding litigation.