The steps that you need to take if your business is facing legal action

By Anita Jaynes on 7 October, 2022

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Every business owner knows that it is important to prepare for the worst even as you are planning for the best. There has been no end to the bad news in recent months for business owners. The rising cost of living is going to be hitting everyone hard, and customers and clients are going to be thinking a lot more carefully about how they spend their money, and who they spend it with. It seems like there are more than enough difficult scenarios on the horizon without something unexpected throwing another spanner in the works.

However, the fact is that you never can tell when the unexpected might happen, and it when it comes to being threatened with legal action, it is the kind of thing that can come right out the blue. If your business has never been faced with this kind of issue before, it may come as a bit of a shock. Even if you knew that you were having a dispute with a client, for example, you may have hoped that it would all be resolved without any cause for concern. Whatever the reason for the legal action, there are a few steps that you need to know about.

Make Sure You Read Any Communication Carefully

The first thing that you need to remember is that this is very serious indeed. If the other party has taken this step, then it is not going to go away without some form of resolution. The chances are that the other party involved will have sent you a letter, and that this will detail exactly what the problem is and what they are looking for from you. It is vital that you take the time to consider this carefully and that you understand exactly what is going on. 

Find Legal Aid Right Away

There can often be the temptation to try and resolve these kinds of matters yourself. This is particularly true if you think that it is all just a misunderstanding, or if you have a personal relationship with the claimant that may have stretched back a number of years. What you need to remember is that you cannot afford to let this become personal. From this point on, every communication will be something that a court may look at. It is vital that you hire a business solicitor with experience in this area, and that you follow their instructions carefully.

Find Translators If Required

If the legal issue is coming from a company outside of the United Kingdom, then you may need to find a translation company that can help you with this issue. It is very important that you find a service that has experience in legal matters, as the specific details of the language are extremely detailed and highly nuanced. You should find a legal translation company that uses only legal professionals, legal translators, and proof-readers to make sure that no details are missed. This way, nothing is going to be lost in translation that could cost you in the eyes of any legal official. Rosetta Translation is a highly accredited translation service, and they specialise in legal translation. Visit their website to find out more about how they can help you. 

Keep As Much Evidence As You Can

Once you receive the letter stating that legal action is being taken, you need to consider the fact that every piece of communication between you and the claimant is evidence. As soon as that letter arrives, go through your records of your recent dealings with this person or company. You will need to provide your lawyer with as much information as possible to give them the most complete picture. Once you have done this, you must also ensure that any subsequent communication is passed onto them as well. Even if something seems insignificant, remember that it could have a bigger bearing on the case than you realise.

Think About The Financial Impact

Every business is worried about their costs at the moment, even as the government promises more support. It is no secret that legal proceedings can be significant, so you will need to make plans accordingly. Ask your lawyer about their fees as soon as possible. You should also talk to your financial advisor about the potential financial impact of this incident on your business. Create best- and worst-case scenarios and think about what you can do to minimise any damage. You should also talk to your lawyer about whether a court hearing is something that you should pursue. There are additional costs to consider and settling out of court could save you a lot of money in the long run. No one ever wants to end up in this situation but listening to your lawyer and planning for the worst will help you to stay on track.