NO ONE WINS WITH LITIGATION.
I don’t do a lot of litigation, but every so often, my clients need some litigation assistance. The problem with litigation is sometimes you spend a lot to get little. The key is to determine if the other side has any assets or can we even locate them.
The first step for any litigation is a demand letter first in hopes we can negotiate and settle the matter before heading to court. I suggest the parties engage in mediation if the initial negotiation fails. It is much less expensive, and if we get a reasonable settlement amount, it saves the time and cost of litigation. I counsel my clients that even if the settlement isn’t the entire amount, there is a point whereby accepting a lesser amount is always more beneficial than attempting to collect the entire amount.
If that fails work, then litigation is the next step. The downside to litigation is cost. Even the simplest litigation cases can cost thousands of dollars. Plus, it is a time constraint. You may have to be deposed, you’ll have to answer discovery, and there could always be a trial. There are no guarantees in litigation either. Even if we have a good case, we could always lose or have a negative outcome. And finally, if successful, we will only get a judgment. That is a piece of paper that states the other side owes you money. We then have to collect on that judgment (if there are no assets, that piece of paper could be worthless)
If you are a small business and have a possible litigation matter, please let me know. My goal is to get my client the most money with the least effort and time. Sometimes we can resolve the matter with a simple demand letter.