Inadvertently or intentionally, wrongs are committed every day in the United States. Sometimes, businesspersons believe that wrongs have been committed against them by other businesspersons, by consumers, or by the government. If you are deciding whether to sue for a wrong committed against you or your business, you must consider many issues.

The Question of Cost

Competent legal advice is not inexpensive. Commercial business law attorneys charge $100 to $600 an hour, plus expenses. It is almost always worthwhile to make an initial visit to an attorney who has skills in the area in which you are going to sue to get an estimate of the expected costs of pursuing redress for your grievance.

Note that less than 10 percent of all corporate lawsuits go to trial—the rest are settled beforehand. You may end up settling for far less than you think you are “owed” simply because of the length of time a lawsuit would take and the cost of going to court. And then you might not win, anyway! Basically, you must do a cost-benefit analysis to determine whether you should sue. Your attorney can give you an estimate of the dollar costs involved in litigating the dispute. Realize, though, that litigation also involves nondollar costs such as time away from your business, stress, inconvenience, and publicity. You can “guesstimate” the benefits by multiplying the probable size of the award by the probability of obtaining that award.

The Alternatives before You Negotiation, mediation, arbitration, and other ADR forms are becoming increasingly attractive alternatives to court litigation because they usually yield quick results at a comparatively low cost. Most disputes relating to business can be mediated or arbitrated through the American Arbitration Association (AAA).

There are numerous other ADR providers as well. You can obtain information on ADR from the AAA, courthouses, chambers of commerce, law firms, state bar associations, or the American Bar Association. The Yellow Pages in large metropolitan areas usually list agencies and firms that can help you settle your dispute out of court. You can also locate providers on the Web by using a general search engine and searching for arbitration providers in a specific city.

Question

1. Are you prepared to pay for going to court ? Make this decision only after you have consulted an attorney to get an estimate of the costs of litigating the dispute.

2. Do you have the patience to follow a court case through the judicial system, even if it takes several years?

3. Is there a way for you to settle your grievance without going to court ? Even if the settlement is less than you think you are owed, you may be better off settling now for the smaller figure.

4. Can you use some form of ADR ? Investigate these alternatives— they are usually cheaper and quicker to use than the courts.