What Should a Company Do if Somebody Threatens Litigation?


In these modern times, every company needs to have their wits about them when it comes to all matters of a legal nature. Litigation is big business, and you never know when somebody may hold you to account. There are many reasons that somebody could take you to court – from a complex business dispute right through to an industrial tribunal or copyright/trademark infringement. Because there is such a high risk of a company being sued, it is always advisable to have regular legal advice. If you are in charge of a company and somebody threatens you with litigation then it is important to know what steps to follow. In this article we will talk you through what you need to do.

Don’t React

The most important thing to remember is that anything that you say, whether verbal or in writing, could affect the case. The minute you know that somebody is threatening you with legal action you need to stop and think. Retaliating or responding in any way could harm your defense. Make sure that all of your employees follow suit too – all it takes is for one person to say something over email or face to face which could compromise your position and you will find that things get a whole lot worse. So instead of responding, take the time to stop and consider your position fully, and instruct your staff to do the same.

Seek Advice

The very next thing that you should do is to approach your legal adviser and ask which steps you need to follow. They will be able to give you the advice you need, and if the matter is a specialist one then they can recommend another expert who can advise you further. Listen very carefully to everything that they have to say and make sure every meeting is minuted so that you have a record of all of your advice. Your commercial legal expert will have extensive knowledge and experience so it’s really important to take their advice seriously.

Keep Records

You will need to begin to collect evidence, so it’s really important to make sure that you keep every single email, letter or other piece of evidence that is relevant to the case. The more evidence that you have in your favor, the better things will go for you so make sure that you have everything that you need. Your legal advisor will be able to give you a list of all of the information that you will need to present in court, so make it your business to collate a full and detailed folder with all of the information that may possibly be requested.

The threat of legal action is never good news, however if it is managed in the correct way then you can at least mitigate the damage and maximize your chances of a successful case. In larger cases where legal fees can soar, you may need to consider approaching a commercial litigation funding company in order to help cover the costs of the dispute.

Nancy Baker is a freelance blogger and an ace creative write with many years of experience writing for top blogs. Nancy has written on a myriad of topics and has written several posts for us.