When New Jersey business owners think about lawsuits related to their business, they may not realize how easy it is for an organization to get sued, even if they are taking the right steps to avoid legal action.
Here are just some directions from which businesses of all sizes and shapes can face an action before a court or administrative agency:
- A business may face internal threats such as disputes among the business’s owners and investors.
- Disputes with the business’ vendors and creditors or, by contrast, collection actions against individual or other business customers are common. Especially if they feel forced to pay a bill they do not believe they should owe, customers are also prone to sue the business
- If anyone gets injured in connection with the business, civil claims for compensation involving personal injury or property damage will likely result. On a related point, a business may also have to manage a coverage or claim dispute with their insurers.
- Disgruntled employees or former employees may file court or administrative cases.
- Competitors may use the court or administrative system against the business.
- Government administrative agencies, including taxing authorities or those in charge of zoning and code enforcement, may take enforcement action against the business if the agency believes the business has violated a law or regulation.
No matter who files it, businesses should take all litigation seriously
Depending on the circumstances, even a single successful lawsuit against a New Jersey business can be devastating. It could, for example, leave a business with a multi-million-dollar judgment against it or could leave the business unable to continue to operate competitively.
Furthermore, litigation against a business can have ripple effects both on a business’s reputation and its balance sheet.
A thorough legal strategy though through in advance goes a long way to prevent litigation. However, chances are that a business will from time to time have to protect its legal interests in court.
When litigation happens, the business leadership will need to understand their options and prepare a strong case in their defense.