When you are running a business there are bound to be conflicts occurring from time to time, whether within your own business or with outside entities. It is to resolve such conflicts in a legal manner that many businesses employ the services of corporate law firms in Sri Lanka.
Commercial conflict resolution, or business litigation, is the process of resolving conflicts and disputes between commercial entities through legal means. This generally involves filing a case in courts, and:
- Identification of dispute: Businesses may have disputes and conflicts for different reasons, such as disagreements over contracts, intellectual property rights, breach of agreements, partnership disputes and more. It is essential to identify what type of conflict has occurred, so that corporate lawyers in Sri Lanka can find the best solution to resolve the same.
- Initiate litigation: In the event that discussions or arbitration fail, one or both parties may decide to file a lawsuit in courts in order to legally resolve the conflict or dispute.
- Court proceedings: During litigation, litigation lawyers in Sri Lanka from both parties will forward arguments, evidence and legal reasoning before a judge (or jury) in order to reach resolution. Both parties may also bring forward witnesses to support them.
- Judgement: Based on the facts presented by both parties and their legal representatives, as well as the evidence and legal precedence, the judiciary (the judge or jury) will make a decision regarding the conflict.
- Enforcement: If any of the parties are found to be liable to pay any damages or compensation to the other party, the court will enforce this decision, which compels that party to adhere to the decision given.
- Appeals: In the event that any of the parties involved are dissatisfied with the decision of the court they may make an appeal to a higher court, which will then review the case and make their decision to either keep or change the decision given by the lower court.
Business litigation can be a very complex and expensive process, where you would need to have lawyers from the best law firms in Sri Lanka representing you. It can also be a very time-consuming procedure, with some cases taking even years to resolve. Hence, such litigation should be considered only as a last resort, if all other types of informal dispute resolution methods fail.
How can you avoid business litigation when a commercial conflict occurs?
Due to the cost and time that goes into business litigation, it is always preferable to try and avoid it as much as possible. In order to do this, a business can adopt many different strategies in the event that a commercial conflict or dispute arises. These include:
- Clear and detailed contracts: With the help of a lawyer, the business should ensure that all contracts, agreements and terms of service drawn up are clear, precise and unambiguous. This will help avoid disputes and misunderstanding in the future, which can lead to unnecessary legal litigation and costs.
- Open communication: Open communication between the parties is an essential element in avoiding conflicts and fostering a positive business relationship. Any concerns or issues should be promptly addressed and amicably settled, and not be allowed to escalate.
- Negotiations and mediation: If a conflict does occur, it is best to consider alternative dispute resolution methods such as discussions or mediation, in order to avoid a costly and time-consuming court battle.
- Understand the legal risks: It is very important to be aware of and be updated on the legal rights and obligations related to your business. With such knowledge you can anticipate conflicts and take proactive measures to prevent them.
- Compliance with the law and regulations: A business should always endeavour to be compliant with legal regulations and the relevant laws, since non-compliance can lead to legal disputes and litigation.
- Proper record keeping: All business transactions, communication, agreements etc should be property kept on record, and all documentation should be filed in a proper manner, as these would come in useful during any conflict or legal battle.
- Seek legal advice: In the event that a conflict or disagreement does occur, it is essential that you seek advice from a good lawyer as soon as possible, and not wait until the issue has escalated into something far worse. A lawyer may be able to give both parties easy and quick ways to resolve the issue amicably.
- Preserve relationships: All actions have repercussions, and it is important to ensure that there are no long-term implications to any actions you take as a business. During any conflict resolution, it is vital to try and preserve the business relationship and the reputation of both parties.
- Insurance coverage: Ensure that you have all the required business insurance such as liability insurance, errors and omissions insurance, workmen’s compensation etc. Such policies help provide financial assistance during legal disputes.
Keeping such strategies in mind can help minimise the risk of litigation, and with it the costs and other factors involved. It is always best to try and resolve any issues in an amicable manner rather than trying to do it through a legal battle in courts.
How to find a good business lawyer
In the event that you are fighting out a dispute in court, it is essential that you have the backing of a reputed and experienced business lawyer. Here is how to find a good lawyer to assist you in your case:
- Identify your needs: It is essential to first identify what your specific needs are, whether it is related to intellectual property, drafting of contracts, litigation etc, so that you can find the best lawyer to suit these needs.
- Get recommendations: Ask around and get recommendations on good lawyers through business partners or other contacts. You can also research lawyers online for reviews and testimonials from past clients.
- Check credentials: Make sure that you check the lawyers’ credentials and experience, especially checking if they have experience in the specific area you require. When going into litigation, you do not want to have an inexperienced attorney bungling things up for you.
- Schedule a consultation: It is always best to speak to a lawyer face-to-face, so that you can see how well they fit in with your needs, and if you are comfortable working with them. Many lawyers offer a free initial consultation, so there will not be any costs involved with speaking to one.
- Ask questions: Be sure to ask them whatever questions you have prepared so that you can assess their level of communication, as well as commitment to your case.
- Check on costs and fees: Different lawyers will have different fee structures; hence it is important that you find out about these at the initial stages, and make the right decision according to your budgetary needs.
- Trust your instincts: Be sure to choose an attorney who is willing to listen to you, understands your business goals, and shows a genuine interest in your issues. If you do not feel comfortable with the lawyer, it is best to choose someone else.
Going into business litigation to resolve disputes and conflicts can drain you both financially and in many other ways. Such cases can often take years to resolve, and it may just not be worth it. It is always best to try other, more amicable, methods to resolve these business issues.
