What are common reasons for litigation among businesses?

| Jan 8, 2020 | Business Law |

Data compiled by the U.S. Chamber’s Institute for Legal Reform shows that small businesses here in Wisconsin and elsewhere in the country spend as much as $100 billion annually on litigation. There are three primary reasons that companies end up getting sued. They’re sued by an employee, a customer or another company. There are some steps that you and your company can take to avoid having a lawsuit filed against you.

One common reason that small businesses get sued is because an accident occurs on their premises that they weren’t planning for. Many companies take out state-minimum insurance coverage. Others don’t purchase coverage at all. If one of their employees is involved in a catastrophic car crash or a customer is involved in a slip-and-fall accident or some other serious type of premises liability incident, then your company may be sued for any amount over what your liability insurance covers.

If you or your company has trade secrets that are disclosed or uses a trademark that is unlawfully replicated, then you may wish to exercise your right to protect that information. You may decide to pursue legal action against whoever used it unlawfully.

Another common reason that small businesses find themselves having to consult with an attorney about is to respond to or file a breach of contract lawsuit. Smaller companies often have to sue larger ones after not receiving the services or goods that they were promised. This often happens after other legal remedies have been exhausted.

One of the final reasons that small business owners end up becoming involved in litigation is over employment matters. An employee may allege that they were discriminated against, that they were subjected to harassment or that they were inadequately compensated or classified. You, as the employer, may have to call in an attorney to negotiate with your employee to settle these matters.

There are many reasons that small businesses end up being sued. It can result in disastrous results if you try to settle such matters on your own without the assistance of legal counsel. An attorney in Oshkosh can protect you and your Wisconsin company’s interests so that you don’t expose yourself to further legal liability in your case.