How To Spot a Client That is Likely To Be Trouble

When I first started practicing law, I wish someone had told me how to spot a client that was likely to be trouble. This is an art form, learned over time, which could have saved me and/or some of my partners substantial time and effort over the course of the last 25 years. And, judging from the sheer number of “Motions to Withdraw” being heard routinely at Motion Calendar, I have come to realize that I am not the only one who has been challenged by this issue. So, I decided to put together a list of things to watch out for, which is by no means inclusive, dispositive or all encompassing. Rather, the list, when taken together, may provide some guidance on the warning signs lawyers may want to consider when taking on a new client or keeping an old one.

1. Warning Sign # 1- The Prospective Client Refuses to Sign the Retainer
This is not a good sign. The retainer is an important part of the attorney-client relationship. A client who refuses to sign the retainer is likely not getting off on the right foot with his or her lawyers.

2. Warning Sign #2 – The Client, Once they Retain you, Questions Every Invoice.
It is normal for a client to question the invoices received from lawyers. After all, legal fees can sometimes be hard to understand. A client who questions a lawyer’s invoice is normal. A client who questions every invoice is not.

3. Warning Sign # 3 – The Client Calls Your Office Every Single Day

There are cases which justify a client contacting his or her lawyer on a single litigation matter every day. Injunction cases. Emergency matters. During trial preparation. However, the average case does not require daily client contact. It is one thing if the lawyer is calling the client every day; it is quite another if the client is calling the lawyer every day.

4. Warning Sign # 4 – The Client is Nasty to Your Staff.
We value our staff. They make our office work effectively. Without them, we could not be as good as we are. We take exception to people (including other lawyers) who are not nice to them.
5. Warning Sign #5 – The Client Routinely Does His or Her Own Research.
I like having clients who think and do their homework. It shows that they are interested in their case. However, a client that does his or own research on every issues suggests that either the client does not trust the lawyer or that the client is focused on the case in an unhealthy manner.

6. Warning Sign #6 – The Client Cannot Accept the Deadlines Provided by the Rules of Procedure and Demands a Faster Resolution.

It is hard for some people to understand that a defendant normally has 20 days to answer. To someone who may be owed money, or who has been wronged in some manner, twenty days may seem like a lifetime (not to mention routine extension requests which are almost always granted). What separates the good clients, from the problematic clients, is that the good clients accept it when you tell them that we have to give the defendants twenty days to answer. The problematic clients cannot accept this and are also more likely to question the fact that the other parties have 30 days to file responses to discovery. A client who argues with you about the deadlines set forth in the rules of civil procedure should either get themselves a seat on the rules committee or find another lawyer.

7. Warning Sign #7 – The Client Sends Threatening Emails to you and Your Staff.
The attorney-client relationship is supposed to be productive and mutually rewarding. When the client starts to send emails that are contentious, and impolite, it is time to start re-evaluating the relationship. Not every client keeps their pinkies elevated. We understand that. However, for those clients whose angst about deadlines, timing, delay and cost become an interference it is time to look hard at the relationship. Today’s nasty email often becomes tomorrow’s problem.

8. Warning Sign #8 – The Client Routinely Shows up at Your Office Unannounced.
Lawyers are schedule and deadline driven, by necessity. A client that comes to your office, routinely unannounced, often interferes with that. Couple that behavior, with those identified above, and you have a recipe for a problem.

The Warning Signs above, taken separately, are often not a cause for concern. Litigation, particularly high stakes litigation, can be stressful. Clients sometimes get stressed, as do their lawyers. The problem comes in when all the warning signs above coalesce into a single person and a single relationship. Lawyers often wait until the situation gets out of hand before filing a Motion to Withdraw or when it becomes too late when the case is on the eve of trial. This is why the attorney-client relationship must be continually evaluated by the lawyer to ensure that is both productive and mutually rewarding.

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The Perils of A Family Business or How to Save Thanksgiving

Imagine that you are sitting at the Thanksgiving dinner table with your family—aunts, uncles, cousins, and distant relatives from out of town.  Someone at the table cavalierly asks: “who did you  vote for ?”  World war III breaks out while the family members debate Hillary versus Trump.

Now imagine that these same people are shareholders and employees in your family business.  If these people cannot agree among two candidates about whom to vote for, how they will be able to agree about the joint management of their financial affairs?  The answer is – only with great difficulty.  This is one reason why so many family businesses, and so many families, end up in costly litigation.

Here are some observations, from someone who has litigated many intra-family disputes, about what might have been done to avoid a nasty and expensive lawsuit.

I.          Sign a Contract

It may seem elementary, but this fundamental concept is often ignored by people in business.  Should you really sign a contract with your brother about the maintenance of a family business?  After all, isn’t this the person that you grew up with, shared a room with, and is your best friend?  Of course you should.  The interesting thing about the negotiation of shareholders’ agreements among family members is how absolutely divergent the views are of different family members about how to run the business.  These views often manifest themselves in the negotiation process.  Imagine, however, that there was no negotiation process and, instead, the business simply began and the debate commenced without  a written agreement.  The likelihood is that chaos would ensue, profits would dissipate through disagreements and nothing of a material nature would be accomplished. Thus, this basic point — the execution of a contract — is a fundamental and necessary component to the establishment of a family business.

II.         Establish a Hierarchy

Someone has to be the boss.  Historically, it has been Dad.  However, in “modern families” other people can be asked to assume the mantle of leadership.  Generally, it is wise to choose the person with the most business experience, the best education, and the most obvious leadership skills.  In any family, the appropriate candidate should be obvious.  If the parties cannot agree on this, it is generally a bad sign.  Leadership is essential to any business and a family business is no different.

III.        Treat The Family Business Like A Real Business 

            The family business is a real business.  The family business should not be run like a family. The conversation between the leaders in the family business should not mimic the conversation at the Thanksgiving dinner table.  Rather, family businesses should conduct regular meetings, where notes are taken, minutes kept, and tasks assigned.  You should be able to judge the potential success of your family business by determining how easy it is to apportion tasks among family members after the Thanksgiving dinner is concluded – who will wash the dishes, the pots, clean the tables, fold the linens and take out the garbage?  If this process proceeds smoothly following the big dinner, there is a greater likelihood that the family business has a chance of success.  If the parties cannot agree, following dinner, how to clean up, how will they be able to run a business?

IV.       Utilize written job descriptions

            The easiest place to witness a good old fashioned power struggle is in the family business. This is because the people who comprise it have a long history together. In every family there are those who win the power struggle and those who lose it. Those struggles could be over the color of a room, the radio station that is played in the car during the family vacation to what everyone eats for dinner. The family business is an opportunity for the perennial loser to flex his or her muscles and establish a new beachhead, a place where his or her opinion is heard and obeyed. The problem is that it is only sometimes that the person who is espousing an opinion actually has the expertise to do so. Maintaining written job descriptions will create necessary boundaries and will ensure that only those people with a particular expertise handle those areas 

            V.        Maintain   Performance Measurements

            After Cousin Johnny joins the family business he needs to be able to accept criticism.  Cousin Johnny’s performance must be measured.  Cousin Johnny must be treated like any other employee.  If Cousin Johnny is given preferential treatment, by Dad, because he is Cousin Johnny, there will be resentment by other family members and by other employees who might not be family members.  Cousin Johnny’s performance should be reviewed at least once a year and honest feedback provided.  Cousin Johnny should have a personnel file in which notes are kept.  This will prevent problems with Cousin Johnny in the future if, for some reason, he is removed from the family business and decides to sue.  Treating Cousin Johnny like an employee is a much better idea than treating Cousin Johnny like Cousin Johnny.

VI.       Establish and Maintain Written Hiring Criteria

            If a family business is successful, the likelihood is that it will expand into hiring people who are not members of the family.  It is also possible that additional family members may want to join the business.  After all, everyone wants to be successful and what better way to be successful than to join something that already is successful.  Plus, if your family business prospers, you might find relatives coming out of the woodwork asking for jobs.  This is why you need to maintain written hiring criteria.  You might decide that it is important for your family business to hire only college graduates, or individuals with engineering degrees.  This will assist you in rejecting candidates, whether family or not, who may not have the requisite criteria.  If these hiring criteria are maintained in writing, it will make Thanksgiving dinner all that much easier when Cousin Bob, whose application been rejected from the company, appears at your doorstep, Thanksgiving morning, holding an apple pie.

VII.      Establish an Advisory Board

            The problem with working with a family member during the day and then having Thanksgiving dinner with that family member the following weekend is that issues regarding the family business are more likely to arise at inappropriate times— e.g., during holidays, on weekends, or during the evening.  If “Dad” or “Mom” is in charge of the business, this is more likely to happen.  One suggestion for taking Dad or Mom “out of the loop” would be to establish an advisory board of individuals who have been retained for the purpose of dealing with sticky issues, within the family business, which might place Dad or Mom in an awkward position.  Let the “advisory board” take the heat for a difficult issue.  In this manner, Mom or Dad can explain, before asking Cousin Johnny to “pass the turkey”, the decision that was made, which may negatively impact him, was out of our hands.  The decision was made by the advisory board.

Enjoy your Thanksgiving Turkey with your family and do not discuss either business or politics.


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Ten Things to Consider When Negotiating a Contract

1. Who are the contracting parties. If you are the payor (the person that is paying under the contract) it is best to avoid a personal guaranty. If you are the payee (the person receiving payment under the contract) it is best to get a personal guaranty.
2. What is the consideration. Typically, for contracts to be enforceable, there has to be consideration which, in laymen’s terms means, that one party needs to give something and the other party needs to get something.
3. The contract should be signed in front of a notary public. Signing in front of a notary reduces the possibility that one signatory may later claim that the signature on the contract does not belong to them.
4. Carefully proofread the contract. Typographical errors can obscure the meaning of the contract which may cause a Court to later determine that the contract is “ambiguous.”
5. Avoid constructions against the drafter. If you are the party drafting the contract, and the contract is being negotiated, you should include a clause that says that, in the event of an ambiguity, which is discovered later, the contract will not be construed against you. In other words, the ambiguity will not be held to be your fault; the fault will be shared equally.
6. Maintain your home turf by including a jurisdiction and venue provision. It is always better to litigate in your home state if litigation becomes necessary. For further evidence, ask the Golden State Warriors.
7. Be careful to use the correct draft. Circulating multiple redline drafts of a contract can be very efficient. It can also be fraught with peril if you use the wrong draft since a Court is likely to enforce the draft with the signatures on it regardless of whether it is the correct draft or not.
8. Make sure the person signing on the other side has the authority. Check to see if you need a board resolution if the contracting party is a corporation or other business entity. Not all corporate leaders are vested with the authority to sign large contracts. Read the company by-laws of the other contracting party if necessary.
9. Make sure the contract clearly spells out deadlines and required time periods and avoid vague language like “as soon as possible” or “promptly.” Instead, try this: “no later than thirty days from the execution of this agreement.” Its hard to argue with that language.
10. Verify and do not rely on oral statements. People make all sorts of claims when negotiating a contract. It is best to verify the truth of those statements through documents or financial statements. Don’t take anyone’s word for it.

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  1. When the process server comes to the door, with the complaint, make sure your name is on it before you accept it.
  2. Do not speak to the process server other than to say “thank you” (once you determine that your name, or your company name, is on the complaint)
  3. Accept service once you determine that it is you; avoiding service or running away from the process server also makes you look bad (think O.J. Simpson in the White Bronco).
  4. Call your lawyer and schedule an immediate appointment (generally, you only have to 20 days, absent an extension, to respond to a Complaint.)
  5. Retain the lawyer by signing his or her retainer agreement.
  6. Write down the date your response is due to the complaint.
  7. Download all of your relevant email and other documents and send it to your lawyer; do not destroy anything.
  8. Make a list of everyone that may corroborate your story and provide the list (names, addresses and telephone numbers) to your lawyer along with a description of everything these individuals may know.
  9. Explain to your employees (if applicable) what the lawsuit means and instruct them not to speak to anyone about it other than you and your lawyer.
  10. Shut up – don ‘t call your adversary, your friends, or your Mom to tell them about the case. It may come back to haunt you later.

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How to Communicate With Your Lawyer

Lawyers are supposed to be masters of communication. That is what they, supposedly, learned in law school. They learn how to write, crisp, clear sentences and are supposed to shape those sentences into cogent, well orchestrated paragraphs which are later supposed to be formed into persuasive arguments.

Lawyers learn oration in law school, so they can present their arguments to a Court and sometimes even to a panel of judges. These are the people who become politicians and stand up on the floor of the political convention waxing on about the future of America. So, how come it is that these same people seem to have so much trouble communicating with you, the client, about your case or matter ? The answer is that, despite all of that wonderful training, most often, no one has taught your lawyer how to communicate with you, the client.

In that event, therefore, it is likely that you that will have to communicate with them. There is often no sense in sitting around waiting for your lawyer to call you with an update or send you an unsolicited status report letter. Chances are, it is not coming. Accordingly, in order for the client to ensure that they communicate with their lawyers, it is often incumbent upon the client to initiate the dialogue.

And, what is the best way to do that you ask ? Here are some suggestions.

  1. Be Persistent.

Often lawyers are separated from their clients by receptionists, paralegals, associates, vacation schedules, court appearances, meetings and the often omnipresent automatic email response which tells you that your lawyer is “out of town” and will be checking email only “intermittently.”

Let’s start with the basics. When you receive the boilerplate email message response from your lawyer, telling you that your lawyer is unavailable, don’t believe it. Your lawyer is seldom, if ever, totally unavailable. Rare is the lawyer who travels to the Antarctic, in the middle of Winter, where there is no cell phone reception and no access to email. Lawyers are not permitted such travel. Law firms generally frown on lawyers who disappear entirely and become unavailable to clients. In reality, your lawyer is likely lying on a beach somewhere, looking at his email and his cell phone, and ignoring you while sipping his or her pina colada.

Your lawyer is likely reading your email even if he or she is not responding. Therefore, when you email your lawyer, demand a timely answer. The only excuse that a lawyer should have for failing to timely respond to emails is – death. And, in that unfortunate event, you should expect a prompt email from his Secretary advising you of his demise and informing you as to who at the firm has inherited your matter.

Get your lawyer’s cell phone number and use it. The best time to do this is at the beginning of the representation before you establish yourself as a pest and he does not want to give it to you. Lawyers should return telephone calls. While lawyers do go to Court, and attend trials, the average Court appearance lasts less than one hour. Demand a return call, therefore, the same day. Rare is the trial that lasts beyond 5:30 p.m. And why is that ? That is because the Judge knows that the lawyer has to return phone calls – your phone call.

Tell the lawyer’s receptionist when you need to hear back from him or her. Use words, if appropriate, like “urgent”, “important” or “time sensitive.” Don’t use words like “emergency” unless you really mean it. Some Courts define the term “emergency” as the imminent threat of death or bodily injury. Your lawyer will like you better if you use that definition and do not refer to emergencies that are really not emergencies.

  1. What to Say to Your Lawyer

Ask your lawyer to speak English to you. Is this really so much to ask after how much you have paid him or her ? Why should you have to have your law dictionary open just to understand what the guy is talking about. If you don’t understand what they are talking about, say so. “Dude, thanks for that 20 minute ‘explanation’ but that actually makes no sense to me.” Some lawyers, the good ones, may actually appreciate that. The bad lawyers will explain it again saying essentially the same incomprehensible thing they said the first time.

Ask about timing. “How long will this take ?” is one of my favorites. The reason that it is one of my favorites is because it almost always takes longer than anticipated. The reason for this is two fold – first, your lawyer likely has other things to do and, second, so does the Judge. You should consider whether you can live with the likely time schedule and how you may feel when the estimated completion date actually passes and the resolution of your matter ends up taking longer than planned. Can you handle the wait ? If the answer is no, you may want to consider alternative forms of Justice such as those recommended by Don Corleone in The Godfather[1]

Ask about the Cost. This is one of your lawyer’s least favorite questions. Why ? Because he or she likely has no real way to answer it. That, of course, does not prevent the average lawyer from trying. The problem with the question of “how much will this cost” is that, in order to answer this question properly you will have to be able to accurately predict what the other side (your adversary) will do. Nonetheless, you, the client, are entitled to an answer to this question, even it if is only an estimate subject to caveats.

Ask for your Bill. Smart clients ask to be billed at least every thirty days and, sometimes, even more often. The bill should tell you what is going on in your case. If it does not, don’t pay it. You should know and understand what you are paying for and why.

Ask for a case plan. Many lawyers really have no idea of how to resolve a case timely and efficiently. No, they did not learn that in law school. What we learned in law school was how to read cases and, then when were done reading cases, we read even more cases, and more cases, until it came time for the Bar Exam and we were then asked to regurgitate the “holdings” of those cases back at some invisible grader, in a far away city, that we never met before and will, in fact, never meet. That is how we become lawyers. Not one word about strategy. Not one class in case planning or billing or how to communicate with you.

The way lawyers learn these important tasks is on the job, when you, the client, ream us. And this, my dear client, is how we learn to be lawyers, not by reading the “holdings’ of piles of cases in law school.

One last thought. Lawyers are people too (I know that may seem hard to believe). We actually work better and harder for people that we like. So, be nice. It may benefit you in the long run.





[1] This is called satire and is not intended to be taken seriously so please do not tell my friends and relatives that I recommended that you take a “hit” out on your adversary.

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The Florida Litigator

Representing a debtor in a Florida collection action, in which your client is the head of his or her household, is usually fairly straightforward.  Your client resides in a debtor’s  haven.  In Florida, it is difficult for creditors to reach your client’s assets if she is the head of household.  In Florida, there is an exemption from garnishment statute that limits the ability of creditors to garnish the wages of someone who is determined to be a “head of household.”  F.S. §222.11 (2012).  In order to avoid the effect of this statute, a creditor must obtain from the debtor an explicit waiver.

Florida also frowns upon certain common collection devices used in other states known as “Confessions of Judgment.”   If you live in New York, for example, a creditor can have your client sign a Confession of Judgment and, in the event of a default on a loan, can march…

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  • “All warfare is based on deception. Hence, when we are able to attack, we must seem unable; when using our forces, we must appear inactive; when we are near, we must make the enemy believe we are far away; when far away, we must make him believe we are near.”

Sun Tzu, The Art of War

Many business people that come to our office for a litigation consultation utter a similar refrain: “how long will a litigation take, how much will it cost and when will this case be settled ?” These are all good questions for which there are, most often, no easy answers.

Typically, prior to the initial consultation, we have not been involved in the underlying dispute and, therefore, cannot reliably predict what stimuli will bring the other side to the settlement table. However, there are several universal truths, that are, or should be, self-evident.

  1. Very Few Wars End on the First Day

In a perfect world, we would file and serve a complaint, and the other side, either through counsel or on their own, will plead for a settlement conference or make an offer to resolve a pending lawsuit. The problem is that, the receipt of a summons and complaint most often does not inspire the receiving party to become more conciliatory. Usually, the initial reaction is for the other side to “go to the mattresses,” a phrase made famous in the G-dfather, which means to get ready for a long and contentious fight.

So, if the client’s objective is to settle quickly, then it would be reasonable to conclude that, if the other side begins to gear up for a long fight, that is a bad thing.

Right ?


  1. Sometimes Wars Need to Be Fought

How many business people come into our office, after having tried unsuccessfully, to settle a dispute, despite multiple efforts, which occur over an extended period of time. The distressed business person walks into the conference room, lays the settlement correspondence out on the conference room table, and justifies what is sometimes an extensive delay in bringing suit by stating:

“Look at how many letter and emails I sent. Look at how many times I spoke to my adversary on the phone. We had lunch. We had dinner. I offered them everything. I got nothing.”

This somewhat sad scenario is a regular occurrence in business. A client who offers everything and who gets nothing. To the battle tested litigator, the problem should be obvious; to the average business person and the neophyte, it is likely not. Here are some suggestions which will help the client, a prospective combatant, move from the “I offered everything approach and got nothing” to a place where maybe he or she will get a lot, maybe everything.

  1. Learn to Love the War

If you can accept the proposition that there is likely to be a war, you might as well win it. In order to do this, you must reconcile yourself to the fact that you might be involved in a prolonged conflict most often against your wishes. This happens when you have an adversary who simply will not cooperate. As we all know, there are people like this whom we encounter in business and in life. The trick is to learn how to convince them to move their position. The only way to effectively do this is to convince them that they will lose more by fighting than by settling.

When you learn to love the war, and see it as a means to an end, there is a greater likelihood that you will be able to convince your adversary that you will defeat him.   Therefore, rather than dreading the many hearings which are part of litigation, or the depositions, a business person would be wise to look forward to, and indeed, embrace those occasions.

Each circumstance, in which you and your lawyer are in the presence of your adversary, provides an opportunity for you to convince your adversary that he will lose more by fighting. This is often accomplished by persuasive and competent advocacy. This objective is also assisted by the demeanor of the client. It is the client who must be able to convince the adversary that he or she has the stamina, the will power and the funds to take the case to trial. If both the client and the lawyer or able to convince the adversary of this fact, whether true or not, it often causes the adversary to look at their checking account balance, assess the likelihood of prevailing, and take stock of their stomach for conflict.

Does your adversary really plan to take the case to trial? It is only by convincing your adversary that you plan to do this that you will ever know.

  1. Judges and Mediators Don’t Love War

Judges and mediators have a sentimental love for settlement. This is laudable. This sentiment exists because judges and mediators know that the court system can be unfair and, in some instances, a settlement which the parties negotiate on their own is often better than a trial decided by a Judge or a Jury.

Litigators most often welcome a Judge who encourages the parties to talk to one another, after a court hearing, or a mediator who tries valiantly to bridge the gap between the parties at mediation. The problem is that judges, and sometimes mediators, understandably have no idea of the prior efforts which have been made to settle the case and the timing of their request.

  1. Every Battle Presents an Opportunity

In any lawsuit, the concept of settlement never completely disappears. It can often be seen lurking, silently, beneath the surface. Depositions and court hearings often provide opportunities for the parties to reassess their settlement position.

Court hearings sometimes provide insight into what the Judge may think of the case. Reading the Judge’s mind is often a business that is fraught with peril; nonetheless, a concrete decision by the Court can often provide an excellent forecast for the long term outcome of the dispute.

Depositions are also wonderful tools for inspiring settlement. They can be far more effective than the client’s letter writing campaign or invitations to dinner. A deposition often reveals how a person’s testimony will play at trial. Will the adversary be a good witness or a bad witness ? Is the witness likely telling the truth ? Does either side’s story cohere ? Will it stand up to scrutiny and cross-examination ?

Unless you are willing to wage war, you and your client are likely to never know the answers to these and other questions about the long term prospects for success.



  1. In Litigation, as in War, Timing is Everything.


The person who wishes to win the war on the first day, and believes that he or she can do so, will surely lose. The reason that “scorched earth” litigators are often successful is because they are able to convince the opposing parties that, before a settlement can be achieved, he or she will burn down the village.


Will they actually burn down the village?


Who knows?


However, the old adage that perception is reality is useful in this context since it is only when your adversary believes that you will pursue the case to conclusion that you will be able to favorably resolve it.

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Top EIght Reasons to LItigate – By Larry Slade

Litigation sucks.


Pursuing legal action sucks time, money, and often it may seem, the very life out of you.

Am I telling you something you don’t know? I’m pretty sure the answer is no, as everyone knows that getting into a legal battle is not a small deal.

More difficult is how to tell the difference between those times when you absolutely must throw the first punch and swing a situation toward litigation, and those conflicts that are best solved before it goes that far.

When I was little, my father taught me a lesson that sticks with me to this day and informs this blog post.

He told me to “do everything that you can to avoid a fight. Negotiate, apologize, and even run if you must.”

But if you are cornered, he advised, “Clench your fist, throw the first punch, and make it count.”

As a kid, I paid attention to what went on in the schoolyard. Coming from New York City, it was a foregone conclusion that there’d be a fight at lunchtime or after school (or both!) nearly every day. First two people would stand off against each other and argue, and then someone would start chanting “Fight… fight… fight… fight!” and it was ON.

Sometimes the jeers and cheers were the fuel for the brawl, and in those cases, it was never clear whether or not there was any reason to be fighting in the first place.

If you’re getting fired up because OTHER PEOPLE are egging you on, I have three words for you: forget about it. (Or, depending on where you’re from, it could actually be one word: fugedaboutit.)

Smart people who want to keep their teeth (as a kid), or their savings (as an adult) and will back down at that point.

But if you’re the person standing there and you know there is something non-negotiable on the line BEYOND your pride, and it’s not about starting a fight – it’s about finishing one – then it’s GO TIME.

The same thing applies to litigation.

As a former schoolyard scrapper, and also someone who’s made his living for the last twenty years in litigation, I always counsel clients to turn to pursue legal action ONLY when there is no other recourse. But then it’s time to come out swinging.

Here are the top 8 reasons that say you must litigate:

1) When there’s enough at stake

I once had a client who owned a shopping center worth millions of dollars that was facing allegations that were both untrue and also potentially financially devastating. The cost of pursuing legal action versus what was financially at stake made the decision to litigate a no-brainer – he had far more to lose had he chose a path of inaction or even settlement.

Deciding if there’s enough at stake is 100% defined by the economics of the conflict. Your decision to pursue legal action should never be emotional or principally driven. When calculating the monetary implications, you have to factor in the cost of suing someone and going to trial. For example, you wouldn’t want to spend $50,000.00 to litigate a case worth $45,000.00 to you.

Other aspects of economic impact that aren’t as simple to calculate but that are easy to see include when:

  • Someone is attempting to steal your brand or your trademark.
  • Your copyright is being infringed upon.
  • Your entire business is impacted by the conducted of some third party; you’ve tried to make them cease their behavior, and they’ve refused.
  • The cost of the litigation pales in comparison to what is at stake if you don’t take legal action.

2) When the other side is non-responsive

In any conflict you should always make an informal attempt at settlement. I know that I must be able to look my client in the eye before we litigate and advise him or her that we have done everything possible to avoid this outcome, but we have been left with no choice. So in the pre-litigation attempt to resolve the conflict, if the other side does not respond to your or your lawyer’s overtures, phone calls, emails, letters, etc. AND it’s clear that they won’t engage in a constructive discussion with you aimed at resolving the dispute, then it is indeed GO TIME.

3) When the other side’s expectations surpass your worst-case scenarios

If someone is threatening to sue you, and you’re done all you can to resolve it to no avail, then you have to take a close look at what they think the dispute is worth. For example, if the other side says they’ll settle for $1.5 million, but your lawyer and you calculate what the most the other side would get out of going all the way to trial, which they win… and it’s not more than $500,000, then the other side is not giving you any incentive to settle. They are asking for a fight, and in my experience, sticking to your guns to, wearing them down and introducing reality into their absurd expectations will usually pay off in a much more modest settlement.

4) When you need immediate relief

The classic case that perfectly illustrates this point is the story of an owner-landlord that leases a farm full of fruit trees to a tenant that is supposed to be caring for them and harvesting the produce. The tenant breaches the lease not only by not paying his rent, but also by refusing to harvest the fruit or to tender control of the property back to the owner. In this case, the owner-landlord has no choice but to go into court and ask for an injunction, which is what lawyers call “equitable relief.” This action is not so much about money as much as it’s about the court directing someone to do something or, conversely, ordering him or her to refrain from doing something.

Other instances that are related to immediate relief include:

  • Someone stealing your trade secrets (e.g. customer lists, market research or strategy, manufacturing techniques, to name just a few)
  • Trespassing
  • Stalking and other ongoing threatening actions
  • Domestic violence
  • Someone cutting down your trees or otherwise impinging on your property
  • In all of the above situations, time is essential, and any delay could have grave results. The court is the only option with the power and authority to effectively provide for immediate relief.

5) When you’re out of time

Let’s say you loan someone money, and that person never pays you back. Hopefully you have a contract, but even if you don’t, you may still technically have two years from the date of the last payment received or from the date of your oral agreement in order to bring a lawsuit. This is call the statue of limitations, which has a built-in expiration date: most claims against third parties or civil claims have two years until the ticking clock runs out. When you run out of time thanks to a statute of limitations, then you are also out of luck. In this case, you must litigate before you lose the right to recourse.

Note: Statute of limitations varies from state to state and claim to claim.  If this scenario rings a bell to you, and you are wondering about what the statute of limitations is for a resolution that you may want to pursue in a legal capacity, please contact me, and I’ll be happy to fill you in based on where you live.

6) When not suing would harm someone else and give rise to a whole new dispute

If you have a duty or an obligation to a third party, and you have subbed out some of the work and now your subcontractor is breaching his or her obligation to you, then you are in the unenviable position of having to assert a claim against your colleagues in order to fulfill your obligations. This situation gets complicated if it drags on too long and then you are the one that is facing a lawsuit from the third party. So dealing swiftly and decisively with your deadbeat subcontractor is the only way to prevail. In fact, the law imposes a duty on people in this situation to “mitigate their damages.”  In other words, you will make the matter worse by not addressing it proactively.

7) When you are trying to resolve the dispute but you cannot get to the decision makers on the other side

Sometimes the only way to get the attention of the person with the authority to rectify a serious issue is to sue the company or other responsible party. A perfect example of this is a bank. Often banks are unresponsive behemoths that could care less about customer service. Many people find themselves on the receiving end of a lender who blatantly violates the terms of the loan (e.g. sending you into default when you are current on your obligations) and then refuses to respond in any way to your overtures to fix it. Calls, emails and letters go without response. When you file a lawsuit you quickly get the matter turned over to the decision makers. And believe it or not, the institution’s lawyers often encourage them resolve the matter (especially when the bank is dead wrong).

8) When the other side is going to file a lawsuit first if you don’t

Back to the schoolyard, where sometimes being the first one to take a swing is what saves you from sure devastation. This is a tough position to be in, because you are taking a calculated risk that says not only do you believe the time for negotiation has passed, but also that if you don’t file quickly, your opponent certainly will.

And if that happens, then they’re the plaintiff and will have the advantage of asserting the original claim, and moreover they will then be characterized as the aggrieved party for the balance of the litigation. So beating the other side to the punch is your only real option.

When you’re considering “the Litigate 8” – the top situations when you MUST come out swinging – the one thing they have in common is the necessity of being swift and decisive.  You can’t afford to sit on your hands, or sit on your rights.

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