The How-To Guide for Protecting Your Business in a Lawsuit


If you own a business, the opportunity to be put through litigation exists around every corner. Whether someone slips and falls in your store or they feel your business has wronged them in some way, chances are this will be seen as a prime opportunity to drag your company through court.

Fortunately, there are ways to mitigate the damage a lawsuit can bring on your company. While litigation is never pleasant, you, nevertheless, must take measures to protect your company and its assets. The following will serve as a guide to help you in this endeavor.

Break Your Company up

One of the grave mistakes of many companies is that they tend to place all their assets into one easily accessed basket. Once a clever lawyer figures out how to pierce the corporate shield, everything from your person to any assets your company holds is up for grabs in the courtroom.

By shifting assets to other corporate entities that operate in conjunction with your parent corporation, you make matters far more difficult for people who are looking to do damage with a lawsuit to get their hands on anything of significant value.

Work With the Right Attorneys

The last thing you want during litigation is to learn that your case is in the hands of an inexperienced law firm. Since you intend on paying attorneys to represent you in court, you must be certain that your attorneys are able to determine the best course of action to take that limits your liability the most. For example, Ogborn Mihm LLP has co-counseled many business dispute cases in Colorado.

What makes them a good choice in the state they operate in is their familiarity with the judges and how they operate. When you and your attorneys know what to expect from specific judges presiding in your region of the country, this provides you a lot of insight in how to best proceed with your case.

Should You Settle Out of Court

When possible, it is often smart to seek to settle out of court. The logic behind this decision is because your company will have a lot of control over how much loss it incurs, and the cost of settling out of court can often be far less than the costs associated with going to court.

While settling out of court is done by the numbers, you should be mindful of the reality that there is always the chance that a judge will rule against your company. In such cases, the costs can increase significantly. Only go to court if you believe it makes financial sense to do so, or your company is forced to do so. Otherwise, settling out of court may be the best business decision you can make to avoid the dangers of litigation.

Your Public Image Matters

According to Business News Daily, what a lot of business owners do not consider is that whether they win or lose in court litigation is still very expensive. What is worse is this may not help their public image much. In fact, a bad public image that arises from litigation can be one of the most damaging sides of the litigation process.

When a company’s reputation is perceived as tarnished, even if the courts rule in the company’s favor, this may do nothing to mitigate the problem of losing customers and valuable clients. Using the media to apologize for any perceived wrongs or to clarify critical details to shed light on your company’s innocence can go a long way to improving how others view your business and its practices.


In a lawsuit, a business can be raked over the coals in a number of different ways. From the loss of capital and assets to the devastation of the company’s public image, there is always something you must watch out for that could harm your company during litigation. The more of these bases you cover, the easier it will be for your company to rebuild its reputation and recover its bottom line after the litigation process is over.

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