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Stay on good terms with potential plaintiffs
By Lauren | September 11, 2009
Continuing my Friday series on ways to keep your business out of court, consider this: if your company is going to be sued, the odds are good that you already know the plaintiff. Why? Because most lawsuits are filed not out of the blue by total strangers, but by people with whom you already have an ongoing business relationship.
It’s a little like the old adage that the vast majority of accidents happen within 25 miles of the drivers’ homes. It makes perfect sense, because most people spend most of their time no more than 25 miles from home. That’s where the people are, so that’s where the accidents occur.
Similarly, lawsuits get filed because problems arise in relationships between people who have reason to expect something from one another. While there’s always the odd lawsuit that makes headlines, most business lawsuits get filed by people who fall into one of a few categories: employees; contractors who supply goods and services; landlords; customers; and any regulator who has some authority over your company’s operations.
So, one simple way to keep your business out of court is to stay on good terms with the people who are most likely to sue you. If you know you have a problem in an important business relationship, talk to the people involved before the problem escalates into a full-fledged dispute. You may have to make an apology and offer something to smooth things over, but maintaining good business relationships is a whole lot less expensive than paying an attorney to defend you in court.
Topics: Apologies, Business Ethics, Professional Ethics, Risk Management, business communications, customer relations, ethics |