Don’t wait until it all goes wrong: potentially avoid litigation by pre-emptively anticipating and planning for it
Planning for litigation to potentially avoid it sounds counterintuitive, right? When things are going well or you’re entering into a new exciting business deal (e.g. shareholders’ agreement, partnership, purchase and sale of assets or equity, supply and distribution agreement, etc.), who wants to talk about what will happen if/when the deal the falls apart or the parties’ relationship breaks down?
Too often, clients come to me – a commercial litigator – only after a dispute has arisen. And sometimes the contract in dispute is…less than ideal. The relevant terms of contract may not be enforceable, or the terms may not say what my clients wanted them to say.
If the first time you consult a litigator is after it all goes wrong, it may be too late. Or you may be facing a long, hard (expensive) legal battle to prove your interpretation of a contract or relationship with the counter-party.
Consider having a litigator review draft agreements before signing them and/or before a dispute arises, even if a transaction lawyer (i.e. a solicitor) drafted the agreement. Solicitors and litigators have different, but complementary expertises and perspectives. A litigator can review contracts to advise on potential areas of dispute or liability, allowing clients to proactively address potential issues and mitigate their risk. A little extra legal fees at the outset may be a great investment to help avoid tens or hundreds of thousands of dollars in litigation costs down the road.