The Los Angeles Superior Court is the largest unified court system in the United States. This is no doubt due to the large amount of lawsuits filed every year in Los Angeles. Many lawsuits means many litigation attorneys (but it is unclear whether this is a cause or an effect). In any event if you own or operate a business in Los Angeles, you can expect to be served with a business-related lawsuit at some point in time.
Business litigation and lawsuits can involve a variety of different claims, including breach of contract, employment claims, patent disputes, real estate lawsuits and more.
Here are some simple steps to follow when you and your business are served with a lawsuit:
1. Take action now. Once served you typically have 30 days in which to respond (although in some cases such as unlawful detainer you have only 5 days). Don’t wait until the 29th day before starting to look for an experienced litigation attorney. Seek out referrals for an experienced business litigation attorney. Secure all of the documents that apply to your dispute. Print out or save relevant emails. Take photographs if applicable. Organize everything so that you can present your case to your attorney in an efficient way.
2. Find a business litigation attorney who has experience in the type of claim you are being sued for. This seems like common sense. If you were suffering from a brain injury, you would seek out a brain surgeon. However, many litigation attorneys advertise that they handle all types of business lawsuits. Make sure your business litigation attorney has actually handled business lawsuits similar to what you are facing. Different areas of law involve different statutes and laws. Some areas even involve a different court. A real estate litigation attorney, for example, will be familiar with the causes of action and litigation tools applicable to real estate disputes whereas a general practitioner may not be familiar with them. A partnership litigation attorney will be conversant with the Uniform Limited Liability Company Act and other California Corporations Code statutes which apply to partnership litigation in Los Angeles. Don’t assume that your potential attorney has the requisite experience.
3. Ask your business trial attorney for a game plan. Again, this is more common sense but rarely followed. A full analysis of the lawsuit up front will keep everyone, including the law firm, focused on the end result rather than the litigation process. Left unchecked many business law firms in Los Angeles will assign associates to a case and engage in the litigation process without giving any thought to whether all of the busy work will get you closer to your desired result. You will pay for that work. Do you know how your attorney will respond to the complaint and why? Typically the initial response to a complaint in the Los Angeles Superior Court is an answer. An Answer is a simple document which (usually) generally denies all of the allegations of the complaint and asserts any relevant affirmative defenses. However, another option is to file a demurrer. A demurrer challenges the complaint on a few narrow legal bases—does the complaint state sufficient facts to allege a viable cause of action? When a demurrer is sustained (granted), the court will then give the plaintiff another chance to file a corrected complaint. If you bring a demurrer against a complaint, will you be able to knock out the complaint or the cause of action for good? It is usually not economically feasible to file a demurrer only to have the plaintiff correct the mistake and proceed with the lawsuit. By asking for a game plan up front, you can make sure that your trial attorney is litigating with a goal in mind instead of litigating to bill fees and make work.
4. Ask your business trial attorney for a budget. How much will your legal representation cost? It is only when you know the answer to that question that you will know whether the process will be worth the expense. You can weigh your budget against the chances of succeeding, the chances of collecting on a judgment or the potential liability that the lawsuit poses to your business. Preparing a budget for litigation is an art, not a science. Sometimes a simple case can take on a life of its own when the opposing counsel objects to everything you do, files motions and delays. The costs of the litigation can quickly spiral out of control. However, your trial attorney should be able to give you a rough estimate of the work expected. Oftentimes a litigation attorney is hesitant to offer a full budget at the outset, knowing that the true costs of the litigation will scare many litigants. However, it is better that you know the potential cost at the outset. Setting aside the emotion and anger that the litigation may cause, a rational business person will want to resolve a lawsuit for as little money as possible, whether that is through litigation or settlement.
5. Ask your business trial attorney to explore settlement. Another important factor in analyzing your lawsuit is figuring out the best way to get out of the lawsuit. You are in business to make money. While it may be difficult to pay a settlement, a settlement may be more economical than paying an attorney to go through the business litigation process. Court hearings, depositions, motions and the like are expensive. What does the other side in the litigation want? You may find that there are other ways to resolve the lawsuit and that the other side may also want to avoid lengthy litigation and expensive attorneys fees. If you are the plaintiff pursuing someone, you should talk with your trial attorney about making a settlement demand that takes into account the amount you are seeking less the amount of money it will take for you to win and collect that amount.
Business litigation in Los Angeles costs money, takes time and causes stress. However, lawsuits and litigation are a way of life and must be dealt with. Following these five tips will help make the best of a bad situation.
Los Angeles business litigation attorney Laine T. Wagenseller is the founder of Wagenseller Law Firm in downtown Los Angeles. Wagenseller Law Firm handles business and real estate litigation in the Los Angeles Superior Court and throughout Southern California. For more information visit the firm’s website at http://ift.tt/1MFsxlF. Mr. Wagenseller can be contacted at (213) 286-0371.
This article by Laine T. Wagenseller first appeared on Wagenseller Law Firm and was distributed by the Personal Finance Syndication Network.
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