What May I Do To Prevent or Reduce Litigation Expenses In The Future
Experienced business owners and executives know that "an ounce of prevention is worth a pound of cure." Taking proactive action to control the exposure to litigation can be enormously beneficial. This may be pursued through the use of legal counsel during the routine operation of your business. Statistically, most small businesses fail to follow the requisite corporate formalities, which can leave the members of an LLC open to personal liability. Companies in general often fail to insert valuable provisions in their contracts or, more commonly, to update old contracts with modern practices. Often, these people discover too late that the contract is inadequate under prevailing customs in the courts.
Consult with an attorney regarding some powerful contractual provisions that may be adapted to your specific situation, including:
1. Mandatory Arbitration or Mediation.
2. Mandatory Rights to Cure.
3. Forum, venue and choice of law provisions.
4. Conditions precedent.
5. Fee shifting provisions.
6. Limitation of liability clauses.
7. Summary relief techniques, such as the use of cognovit provisions in security instruments.
8. Accelerated filing and notification requirements.
9. Waiver of rights clauses.
Through the strategic use of these and other clauses and covenants, it may be possible to preordain how you will deal with litigation down the road. Always consult with an attorney when using such provisions, as the courts have rendered varying interpretations of the clauses, often employing an analysis that is fact intensive.