Avoid Lawsuits With Preventative and Proactive Legal Counsel

When you’re running a business, you want to be focused on how to expand your company and ensure that both employees and customers have the best experience possible. But even a minor oversight, such as misinterpreting a clause in a contract, can lead to a business dispute — and potentially litigation. Addressing conflicts early on and taking a proactive approach can help you reduce the risk of business litigation and the resulting complications, and working with an experienced business law attorney is a significant part of that. Keep reading to find out how a business lawyer can help your company avoid lawsuits before they happen. 

Provide Counsel on the Proper Business Structure

A business’s structure impacts everything, including liability and who can make decisions regarding the company’s growth and future. Each structure has its own benefits and drawbacks. For example, a sole proprietorship is the simplest to establish but leaves you vulnerable to personal liability. A corporation can provide more protections but also has more formal operating requirements. An attorney can listen to your goals and help you determine the right choice. 

Getting counsel from a business attorney before starting a business under any joint ownership structure, such as a partnership, is essential. These structures have a higher risk of business disputes and potential litigation if the owners ever disagree, and an attorney can help you understand how to protect your interests.

Ensure You’re in Compliance With State and Federal Law

Michigan businesses must comply with state and federal laws, including obtaining the correct licenses for the company’s industry and adhering to employment laws. Just one mistake or oversight, such as not renewing a license in time or not completing unemployment insurance registration, can lead to financial and legal penalties. 

Staying in compliance with the applicable laws and regulations is an ongoing part of running a business in Michigan. Employment laws and other rules are often updated, and if you’re not aware of those changes, you could face potential litigation. An attorney can help ensure that you’re aware of all of your legal obligations and have the proper processes in place to avoid issues. 

Draft and Review Business Contracts

Contract disputes are some of the most common reasons for business litigation, and they can also be some of the most frustrating. Vague contracts with contradictory clauses or leftover templated sections that aren’t relevant can leave your business vulnerable to legal action or accusations of breach of contract. Working with an attorney ensures that your contracts include all of the essential terms, such as payment deadlines, kill fees, scope of work, and liability limits. 

Contracts need to be in line with Michigan law and only include enforceable terms. For example, an attorney could help identify an overly broad noncompete clause in an employment contract that could be unenforceable in court and expose your business to risk if the employer were to move to a competitor. An attorney can also help you negotiate contracts with potential partners or third-party vendors to ensure they reflect and protect your interests. 

Prevent Intellectual Property Disputes

Protecting your intellectual property — and ensuring you don’t infringe on the rights of others — is an important part of building a business. If you don’t do proper trademark and copyright checks or ensure your employment contacts protect trade secrets, it could set you up for litigation and potentially affect the reputation and growth of your business. 

A business lawyer can help prevent lawsuits about intellectual property by performing name and mark availability checks with the United States Patent and Trademark Office and the Michigan Licensing and Regulatory Affairs Department. They can also help you register your own marks and send cease-and-desist letters to any competitors who are infringing on your rights.

De-escalate Conflicts Before They Turn Into Legal Actions

Every conflict doesn’t have to lead to legal action, but many people default to litigation when they have a dispute. An attorney can help de-escalate these situations and find alternative dispute resolution methods that don’t involve the legal system. For example, they can intervene early when a customer or vendor starts to threaten legal action in an email by helping you draft an apology letter or clarify a contract point. Many conflicts can be resolved through clear communication or out-of-court negotiations.

An attorney can also represent you in formal mediation and arbitration proceedings and increase the chances of finding a mutually favorable resolution. If a lawsuit does become necessary, an attorney’s skills in negotiation, documentation, and evidence gathering can help resolve it more quickly.

Offer Legal Advice on Major Business Decisions

Proactively assessing risks and taking steps to mitigate the chance of a dispute are key strategies in avoiding business disputes. Before making any major business decisions, discuss the various options and potential outcomes with an attorney. They see what happens when things go wrong and can offer a unique perspective on the legal implications of each choice. An attorney can also provide proactive negotiation support for contracts and other agreements to ensure that you’re legally protected if something happens in the future.

If you have questions about how to keep your business out of court and focused on growth instead of litigation, talking with a business law attorney at Kendal Law Group PC is the first step. Our team has extensive experience with a variety of business litigation issues and can help you identify the areas where you’re most at risk and work to address them. Call to schedule an appointment at 248-609-1718.