Unfortunately, there comes a time in almost every business owner’s life where they have to cope with the inconvenient, and often expensive, reality of a lawsuit. Even the most responsible, thorough business owner can find themselves in a situation where a client is unsatisfied or feels that you, the business owner, have cost them money. In business dealings, clients often seek legal recourse as a means to repair any damages.
From the beginning of a business relationship, maintain a constant paper trail. Get everything in writing – approvals, changes, conversations, everything. Most importantly, put your business agreement into writing before any money or services are exchanged, preferably using the appropriate legal document template. Downloadable legal template and software are available online through websites such as ContractEdge.com.
Having physical proof and hard evidence showing what was agreed upon and what actually transpired protects you from the client coming back later and demanding something different or claiming they did not agree to something. This kind of proof is an essential part of the documents you will need to bring your lawyer should someone choose to sue you.
Your lawyer should be familiar with lawsuit cases and will more than likely need the following documents:
· All communication with the other party (the client, business partner, vendor, etc.)
· Any legal documents and agreements (independent contractor agreement, web site development agreement, etc.)
· Summons and complaint issued by the other party
· Any insurance you have (such as professional liability insurance, general liability insurance, etc.)
· Dates and times of communication – basically a calendar of the events that transpired
· Any witnesses or employees involved
· Tax returns and other financial statements
· Bills or invoices issued to/received by the other party
· Incorporation documents
You can also bring anything else pertinent to the lawsuit such as notes from a phone call or meeting held with the client.
If you have physical evidence proving your point, such as an email where it is clearly stated, more often than not it will be difficult to prove that that did not happen. Taking measures such as getting everything in writing keeps you greatly protected and will save you money, time and long term stress.