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Nobody expects to experience legal problems in their business, but unfortunately, it can happen to anyone. Whether it’s a dispute with a business partner, contractor, employee, or client, here are some strategies for handling serious legal issues that have the potential to negatively disrupt your business.

Always consult an attorney first

The first and most important strategy when facing a legal issue is to consult with an attorney as fast as possible. No matter how much you try to search for solutions to your problem online, the best legal advice you can get will always come from a lawyer. Not just that, but a lawyer who specializes in business disputes will be necessary if you decide to file a lawsuit.

For example, if you’re dealing with a breach of contract, which is common, an experienced business dispute lawyer can help you hold the other person accountable in a court of law and get you compensated for your losses.

Don’t file a lawsuit in small claims court until talking to a lawyer

Don’t automatically jump to file a case in small claims court before consulting with a lawyer. If you’ve been seriously wronged, the financial compensation you can potentially recover with an attorney will likely exceed the maximum allowed in small claims court, and a reputable attorney can help you win what you deserve.

Reference any and all signed contracts

When a dispute arises, you might be able to reference contracts and signed documents to resolve the matter. Hopefully, you created a solid agreement that outlines each person’s roles and responsibilities. If so, referencing the document should put an end to any simple dispute that arose out of a misunderstanding, bad memory, or some kind of oversight. However, that may not always be the case.

Sometimes disputes arise despite a clear contract, and if that’s your situation, you need to contact an attorney immediately. If you’re dealing with a person who won’t hold themselves to their word based on a signed contract, you won’t make any progress without a lawyer. It’s unfortunate, but even the best business partners fall out, and it’s actually quite common. When partners fall out, it’s usually because they have serious disagreements of a personal nature and end up disliking and distrusting each other.

Don’t have a signed agreement? Find other sources

If you don’t have a signed contract, try to reference communications, like phone calls, conversations, text messages, etc. Let the other person know what you previously agreed to, and remind them of the importance of sticking to that agreement. If that doesn’t work, consulting an attorney will be your best option.

End the relationship

There are some issues worth resolving, but that’s generally only going to be the case when the other party is responsible enough to own their part and actively work to make things right. When a legal matter arises that has harmed or has the potential to harm your business, most of the time, it’s in your best interest to end the relationship with whoever has caused the problem. For example, if you catch an employee stealing, that should be grounds for automatic termination.

The same is true for any partnerships you have with vendors or clients. For instance, if a vendor starts sending you low-quality goods to save money, but your contract is for a specific item of a specific quality, don’t do business with them anymore.

Be highly selective in the future

After dealing with a legal dispute in your business, it’s important to do what’s necessary to avoid making the same mistake in the future. While there’s no way to guarantee you won’t ever have to face a legal issue again, you can take steps to avoid some preventable issues.

Be highly selective of your business partners and interview them like you’re taking them on as an employee. Ask them how they handled a heated disagreement when they were in the wrong. Some people might lie, but look past what they say. Focus on how they answer the question to get a feel for their sincerity. If they’re unaccountable or making up a scenario, they’ll likely share something trivial. People who make good business partners are people who can royally screw up and own it. Generally speaking, people who take accountability for mistakes make better business partners.

Don’t let anyone off the hook

Never let people off the hook for harming your business. Whether it’s a business partner gone rogue, a deceptive vendor, or an employee taking advantage of you, protect your business by pursuing legal action.

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