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March 4 2020

Florida Business Owners — Tips to Avoid Lawsuits

Florida Business Owners — Tips to Avoid Lawsuits

Litigation can be costly and time-consuming for business owners. For a business owner, dealing with a lawsuit can distract the owner from daily operations, which could result in loss of revenue, in addition to the cost of litigation. Even though lawsuits are a risk of doing business, there are ways in which a business owner can reduce the chance of being sued.

Five Tips to Avoid Litigation for Business Owners

Working with a Florida business law attorney whenever a legal matter arises is one of the best ways to reduce your risk of business lawsuits. Five other tips to avoid being sued include:

  1. Use Carefully Drafted Contracts

Using business contracts can reduce the risk of lawsuits for business owners. When carefully drafted by a business law attorney, a contract reduces the risk of misunderstandings that often lead to disputes and lawsuits. Also, a contract can be drafted to include terms that require the parties to submit to mediation or arbitration instead of litigation in the event of a dispute.

  1. Develop and Implement Company Policies

Draft workplace procedures and policies for your company. Policies and procedures may not avoid all lawsuits, but they can help reduce the risk of some lawsuits. Include terms in your employee handbook that require all employees to learn and follow company policies and procedures as part of performing their job duties.

  1. Enhance Customer Service

Some lawsuits arise because customers or clients are not satisfied with your service or products. Make customer satisfaction a top priority for your company. Employees and managers need to be trained on how to handle disgruntled customers and client complaints. Company policies and procedures for handling customer complaints may avoid some business lawsuits.

  1. Develop and Follow Strict Employment Policies

Employee lawsuits are a common type of business lawsuit. Federal and state employment laws include strict regulations regarding harassment, discrimination, wages, benefits, and other employee-related issues. Even if you unintentionally violate employment laws, you could be subject to a lawsuit by an employee, in addition to potential fines and other punishment for breaking the law.

Minimize your risk for employment lawsuits by familiarizing yourself with employment laws that apply to your company, and working with a business lawyer to develop your employee policies and handbooks. Also, make sure that all managers and human resource employees are educated regarding employment laws and regulations.

  1. Attempt to Solve Without Litigation

Consider the cost of litigation versus the cost of settling the dispute through mediation or arbitration. With the assistance of a trained, impartial party, you may be able to settle your dispute without a lawsuit. In some cases, settling the matter outside of court may save money and time.

If you do receive a lawsuit naming you or your company as defendants, learn more about what steps to take to prepare for litigation in our blog section.

Work with an Experienced Florida Business Lawyer

Business law attorney Matthew Fornaro provides a variety of legal services related to business law, including business formation, contracts, employment matters, business succession plans, acquisitions, and litigation. We strive to assist business owners with every aspect of business law, from startup through closing the business.

If you have questions about issues related to your business, contact our office to schedule a consultation with a Coral Springs business law attorney. Call 954-324-3651 or contact us online for more information.

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