Advantages and Disadvantages of Taking a Business Dispute to Court

No business owner wants to be involved in a dispute. Disputes can be stressful for businesses. However, sometimes, business disputes are unavoidable. When a business dispute arises, the main concern becomes which course of action to take to resolve it. One of the popular ways of resolving business disputes is through the court. However, alternative dispute resolution (ADR) methods, such as mediation and arbitration, have grown in popularity over the years.

Litigating a business dispute in court has several advantages and disadvantages. Before taking your business dispute to court, it is important that you understand these advantages and disadvantages. Below, we look at some of the advantages and disadvantages of taking a business dispute to court.

There are several advantages of resolving a business dispute through the court system. The following are some of the advantages of taking a business dispute to court.

With litigation, parties can refer to previous rulings and use that precedent to strengthen their argument. A precedent is a court decision that can be used as a guide when making decisions in subsequent similar cases. Precedents help in interpreting laws. Additionally, precedents can be advantageous when dealing with an ambiguous or complicated issue.

You might wonder, “How can having a business dispute visible to the public be an advantage?” Doesn’t having a business dispute visible to the public risk damaging your personal or business reputation? While resolving a business dispute in court and having it visible to the public can damage your business reputation, it can also be advantageous. A public court resolution can demonstrate a business’s commitment to accountability and fairness. Having a business dispute visible to the public can set the record straight. It can provide accurate information about the dispute, thus preventing misinformation. 

If you are on the losing side, the fact that you can appeal a court decision can be a pro. By appealing a court decision, you have the chance to have the decision reversed or modified.

The following are some of the main disadvantages of taking a business dispute to court;

One of the biggest disadvantages of litigation is that the process can be time-consuming and costly. Depending on the complexity of the case, it can take months or even years to resolve a business dispute in court. Apart from lengthy proceedings, other things that make litigation costly include court costs and discovery expenses.

A court case can create an adversarial atmosphere, which can lead to further conflict.

Resolving a business dispute through the court system can damage the relationship between the involved parties. The trial process can cause long-standing rifts between the involved parties.

The outcome of a court case is uncertain, as it is up to the court to make the final decision. However, while trial outcomes can be unpredictable, an attorney can assess your case and provide you with a reasonable assessment of the potential outcome.

If you are involved in a business dispute and need help determining the best course of action, contact our qualified business litigation attorneys at SAC Attorneys LLP.