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What are common reasons businesses end up in litigation?

| Sep 20, 2019 | business litigation |

Businesses do everything possible to protect themselves from lawsuits filed by customers, employees, vendors, contractors and other businesses. Despite this, companies can still wind up in litigation. These lawsuits can force a business to close its doors if they do not have the proper insurance protecting them. So, what are some common reasons businesses end up in litigation?

Companies are often sued for the following reasons:

  • A customer suffers harm after using a company’s product
  • A consumer or supplier of a company claims the company breached a contract
  • Employees claim they were discriminated against, that they were withheld wages or that they were wrongfully terminated
  • Employees negligently perform their job duties, leading to injuries suffered by customers or other employees
  • Customers received services that fell below a specific standard level of care
  • Shareholders have a belief that the company misled them about its financial situation
  • Employees, customers or other companies claim that the business infringed on its intellectual property
  • The company failed to safely maintain its property, leading to injuries of workers, vendors, customers and other visitors

Companies facing litigation have a lot of decisions to make. They can fight the lawsuit, especially if they know it is frivolous, or they can settle outside of court. Settling outside of court makes sure that the company is not dragged through litigation publicly, which could takes years to resolve.

Has your business been sued? Are you worried that your company will not be able to survive a lawsuit? All businesses, no matter their size, should have a business attorney they consult for any type of issue. This makes fighting litigation much easier when the time comes.