Negosentro.com | What every entrepreneur needs to know about class actions | Being an entrepreneur is a rewarding experience. But there are pitfalls. One of which is becoming embroiled in litigation. If that happens, all your hard work can be for nothing. Everything you have made could end up being spent on covering legal fees and paying compensation to litigants.
So, every entrepreneur needs to find out about class actions. Primarily with a view to understanding how to avoid becoming involved in one as a business owner. But also, so that should they become a victim of someone else’s incompetence they are aware of an effective way to win compensation.
Litigation is rarely a good thing
The first thing to bear in mind is that ending up in court is rarely a good thing. It costs money and, even when you are in the right, you will end up having to expend a lot of time and energy. Both of which would be better spent on building up your business.
The risk of litigation is significant
It is no good thinking ‘it will never happen to me’, because the risk is significant. In the first half of 2017 alone, over 3,000 class action lawsuits were filed in the federal court districts of Miami and Brooklyn.
The number of people using legal action to bring companies and private individuals to book is on the increase. You can read more about the data behind the above statistics by clicking here.
Do your utmost to run your business within the rules
For this reason alone, it is important that you stay within the law and think carefully about the ethics of your business. Just because something can legally be done does not mean that you should do it. If it has the potential to bring harm to others you could end up in court as a test case. A case that you could easily lose.
Hire a well-qualified legal team
Frustratingly, even when you do that, all you can hope to do is to reduce your chances of being involved in a lawsuit. Inevitably, things get missed and sometimes the consequences of those omissions are serious. In that situation, people can easily end up having a legitimate reason to make a claim against you. Or, they could simply believe that they have a case, even when they do not.
Either way, having access to a well-trained and experienced legal team can make a huge difference to the outcome. With the right advice, you stand a good chance of navigating the situation and coming to a settlement that works for both parties.
Don’t wait to be sued before hiring a lawyer
It is very important that you do not wait until you are being sued to hire a lawyer. The right business lawyer will work alongside you to ensure that you reduce the chances of being sued in the first place. But it is important to choose one that has experience that is relevant to the field in which you are operating. This article explains some of the things that you need to consider when hiring a lawyer for your business.
