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Don’t threaten to sue … unless you really mean it!
By Lauren | January 27, 2012
Continuing my Friday series on keeping your business out of court, let’s focus on a mistake that too many businesspeople make. On the theory that “the best defense is a good offense,” some people make it all too clear to their contractors, suppliers, and consultants that, if a single mistake is made, they’ll take the offender straight to court. Taking such an aggressive stance might seem like good risk management at first blush, but it can backfire. Here’s why:
Some people just won’t do business with customers and clients who continually threaten to sue unless everything goes exactly their way. It’s a sensible way to reduce their litigation risk, and it certainly makes their lives less stressful. They wouldn’t do business at gunpoint, so they refuse to do business with potential lawsuits constantly hanging over their heads. If you push those people too far with threats of litigation they’ll simply stop doing business with you, and you may have trouble finding a competent replacement.
Other people will do business with an in-your-face potential plaintiff, but if they’re smart they’ll be extra-careful not only to avoid mistakes, but also to cover themselves. They’ll document every conversation, keep copies of every e-mail and scrap of paper, and load up their communications with disclaimers. It’ll be just that much more difficult to have a candid (never mind civil) conversation and, should they make a mistake, they’ll probably be loathe to admit it. That, in turn, may make it harder for you to address problems and rectify errors before they blow up into disasters. It will also mean that those people will probably have a well-documented file on every mistake you ever made and, because you’ve been so unpleasant, that they won’t be the least bit reluctant to use them against you.
This is not to say that you shouldn’t ever sue a consultant or contractor. Sometimes, despite everyone’s best efforts, the only way to resolve a problem is to tell it to a judge. But if you’ve been one of those people who’s constantly threatening to sue your business associates, recognize that you may well find yourself on the defensive if you do. Our legal system allows defendants not only to offer explanations for their own actions, but to raise their own complaints against plaintiffs. It’s not unheard of for plaintiffs not only to lose their own suits, but to end up spending many years and ultimately paying a lot of money when a judge or jury finds that the defendants were the more gravely wronged parties.
Litigation is a time-consuming, stressful and expensive way to resolve disputes. It’s not to be undertaken lightly, and threats to sue are all too often as mean-spirited as they are unfounded. Think of litigation not as a stick with which to beat your business associates, but as a last resort. A more conciliatory attitude will strengthen your relationships. It may also keep your business out of court.
Topics: Business Ethics, Lauren Recommends, Legal Ethics, Risk Management, Social Ethics, business communications, corporate responsibility, ethics |