Many of us do not think about the possibility of one day being sued. To us, the idea of something like that happening is too far-fetched — things would have to really go off the rails in life or business for us to be stuck in a position like that. But the reality is that being sued happens all the time, even to hard-working, well-intentioned people such as yourself.
Perhaps a misunderstanding with an employee or client gets out of hand, and the next thing you know, you are being served.
Maybe you chose not to satisfy your end of a business deal for seemingly justifiable reasons but are now being accused of breach of contract. Or, a patron at your coffee shop decides to sue after claiming their cup of coffee was too hot and burned them.
The ways people can get sued these days range from the obvious to the absurd:
- Negligence
- Dissolution of marriage
- A business argument
- Personal injury
- Defamation
- Discrimination and harassment
- Intellectual property
- Breach of contract
- The inability to pay a debt
- Product liability
- Property disputes
You can almost always have a lawsuit filed against you. In the meantime, it is important to limit your exposure to being sued as much as possible. Believe it or not, there are a few simple ways to avoid being sued or at least limit the possibility of it happening.
Best Practices That Help You Limit and Possibly Avoid Being Sued
Document everything
Whether you are running a successful business, are in the middle of a contested divorce where everything you say and do is scrutinized, or are embroiled in a different legal matter, documentation is your best friend. Documentation is the most important piece of evidence to minimize your chances of being sued or give you a strong position to negotiate if a lawsuit ensues. Get in the habit of documenting everything, from text message communications with your spouse to detailed documents that properly define financial or business transactions, company procedures, signed contracts, purchase dates and dollar amounts, etc.
Avoid giving false expectations.
It is always best to set realistic expectations rather than making promises you cannot keep or protecting clients from bad news. Things happen during the course of business — whether you are a contractor who runs into a few unforeseen obstacles during a routine bathroom remodel or a corporate executive who promised too much in a contract and can no longer live up to it. Be honest and upfront with your clients from the beginning, set realistic expectations, provide complete explanations for unforeseen issues and how you plan to address them, and always give an honest assessment of the potential risks of different strategies.
Pay your debts
Here is a typical family law example: You must recognize from the minute the court has rendered a child support order that it is a legally binding obligation. The child-support payments are YOUR responsibility, and if you are obligated to pay it, nothing will get you out of that obligation other than paying it. Make your payments regularly and on time, or at least show good faith and pay a portion if you do not have the money to pay the entire amount due. This goes for any other personal or business debt you may incur.
Avoid agreements that do not feel right.
Perhaps you are being asked to perform work that goes against your moral standards, feels fraudulent or criminal, or is beyond your scope of services. Maybe the client you are working with is making unreasonable demands, constantly questions your analysis or advice, or is prone to angry or irrational behavior. If a situation does not feel right, it is better to remove yourself than proceed and hope for the best. Remember that whatever the potential financial rewards, the risk is likely too great in these situations.
Communicate, Communicate, Communicate
The better your relationship with your former spouse, and the more proactive you are at addressing issues, the less likely they will seek legal action. The better relationships you have with customers, employees, colleagues, etc., the less likely it will be that you will be sued. Keep everyone informed, respond promptly, and maintain accurate records.
Keep your word
It makes sense to own up to any agreements, especially those involving written contracts. Even if the contract is difficult to live up to, it sure beats the alternative of spending thousands of dollars in attorney fees and lost productivity.
Do not favor your interests over your clients or one client’s interests over another.
Another way to limit and avoid being sued is always to put your client’s interests first and avoid situations where you are proceeding in a manner that favors one or several clients while simultaneously being a detriment to others.
Do not let disputes get the better of you.
Even if you feel strongly that you have done nothing wrong, no good can come from making a tenuous situation even more hostile or retaliatory by getting angry, threatening, or cutting off all contact. It is always best to take a step back and weigh the pros and cons of a decision before you take action. In most cases, walking away from a dispute is often the best way to avoid being sued.
Be proactive in addressing complaints.
Nothing can put you in hot water faster and lead to a potential lawsuit than a client who believes you are not responsive to concerns. Beyond being responsive and acknowledging that someone has been wronged (intentionally or not), it is imperative in today’s world to have a plan to address those issues and make the client or person who has been wronged whole again. Even if you do not believe you are at fault, taking responsibility for any misunderstanding, presenting options that work for all parties involved, and putting processes in place to avoid the issue in the future will go a long way toward helping you avoid being sued.
Work with a competent attorney.
The thought of being sued over even the smallest of disputes can make anyone nervous about what could happen next. This is especially true if it is for something you were not aware you did wrong, a situation that was not meant to get out of hand, or worse, something you feel you had no control over and is not your fault. When and if that day comes, it is important to have an experienced lawyer in your corner to help determine if the other side has a valid claim and what the next steps should be.
Call Nelson Law Group Today!!
When it comes to the potential of being sued, it is always a good idea to talk to a lawyer about your situation. Give our knowledgeable staff at Nelson Law Group, PC, a call if you have any further questions. Our staff is always available.
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Source: Nelson Law Group