Employees, customers or other parties suing are one of the potential risks that California businesses face. Employees are most likely to file lawsuits related to wage violations, discrimination or other employment laws. In addition, customers may take legal action if the business sold them a defective product, were overcharged for goods and services or were hurt while on company property.
Companies should take all allegations seriously
In the United States, a person can take legal action for almost any reason. Therefore, your company may be subject to lawsuits that you feel are frivolous or otherwise without merit. It’s important to remember that a judge or jury may not feel the same way about a given case. Therefore, it’s important to take the time necessary to gather documents, locate witnesses who may reaffirm your position and take other steps to prepare an adequate defense against a plaintiff’s claims.
Settling may be better
Settling a case enables your company to resolve a business law dispute without admitting wrongdoing. Furthermore, the terms of a settlement are kept confidential, which means that they won’t be fodder for the media or other entities that may want to damage your brand. In some cases, agreeing to a settlement will be less expensive than going to trial. It may also save you considerable time that may be used serving customers or engaging in other more worthy endeavors.
You may resolve a business lawsuit in several ways. For instance, a judge may dismiss it before it can go to trial. It could also result in the defendant agreeing to drop its claim for a lump sum of money or exchange for other types of relief.