Litigation can damage your company’s brand and good will as disputes become public. Whether litigation arises due to a problem with an employee, supplier, distributor, competitor, customer, or any other individual or organization, litigation is an expensive distraction from normal company operations. Litigation can be time consuming and costly as you pay for lawyers, court costs, and expert witnesses. Because the outcome of any litigated case is uncertain, there is also a significant risk that your organization will lose the case whenever you sue or are sued by another. Owen Hodge Lawyers can explain options for avoiding commercial litigation so your organization does not have to deal with the financial stress and time-consuming ordeal of going to court. Call us today on 1800 770 780 or contact us via ohl@owenhodge.com.au to schedule an appointment with our experienced commercial lawyers.

1. Presented By Owen Hodge Lawyers
HOW TO REDUCE THE LIKELIHOOD OF COMMERCIAL LITIGATION
Your Rights and Responsibilities

2. • Introduction
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• Five tips to reduce the likelihood of commercial litigation
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• What’s next
OVERVIEW
Draft detailed agreements outlining important relationships
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Put business deals in writing
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Keep careful records
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Provide full disclosure
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Anticipate possible future contingenties

4. INTRODUCTION
• Litigation can damage your company’s brand and good
will as disputes become public.
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• Whether litigation arises due to a problem with an
employee, supplier, distributor, competitor, customer, or
any other individual or organisation, litigation is an
expensive distraction from normal company operations.
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• Litigation can be time consuming and costly as you pay
for lawyers, court costs, and expert witnesses. Because the
outcome of any litigated case is uncertain, there is also a
significant risk that your organisation will lose the case
whenever you sue or are sued by another.
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5. INTRODUCTION
• With so many downsides to litigation, companies need to
do everything they can to try to avoid it.
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• While there is no way to guarantee you’ll never find
yourself in the court system, there are steps you can take to
try to avoid becoming embroiled in a legal dispute.
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• Owen Hodge Lawyers can explain options for avoiding
commercial litigation so your organisation does not have to
deal with the financial stress and time-consuming ordeal of
going to court.
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7. DRAFT DETAILED AGREEMENTS OUTLINING
IMPORTANT RELATIONSHIPS
• You should have a written buy/sell agreement among
company owners.You should have written agreements
with suppliers.You should have written agreements
outlining employee rights and responsibilities.
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• An oral contact leaves room for a he-said/she-said
situation that not only gives rise to more
disagreements but that also makes disputes harder to
settle.
Reducing the Likelihood of Commercial Litigation

8. • When you have a contract in place,
everyone will know their rights and
obligations, leaving less room for problems
that lead to litigation.
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• If a lawsuit does arise out of a
disagreement, the court can turn to the
written contracts to assess who is in the
wrong and what the correct resolution is.
DRAFT DETAILED AGREEMENTS OUTLINING
IMPORTANT RELATIONSHIPS
Reducing the Likelihood of Commercial Litigation

9. PUT BUSINESS DEALS IN WRITING
• When a new deal is made, ensure that everyone is on
the same page by sending a written letter spelling out
the terms of the agreement. If the other parties to the
deal had a differing interpretation of the consensus, the
problems will become apparent right away and can be
addressed before you get too far into the business
relationship
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• The written details about the business deal also ensure
all parties to the agreement know what they must do to
complete the transaction successfully, thus reducing the
chances of a conflict as the deal goes forward.Again,
having the details in writing also means if the deal falls
apart or goes wrong, the court has a way to unravel what
should have happened.This allows the court to more
easily rule on who was in the wrong.
Reducing the Likelihood of Commercial Litigation

10. KEEP CAREFUL RECORDS
• You should keep records of communications you send or receive, including electronic communications.The records should
be searchable and accessible so you can find all communications in connection with a specific issue.
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• You can also keep notes during negotiations in case questions arise later about what a specific contract term means or what
the parameters of your contract involved. When you have detailed records, you can refer to the written documentation and
understand what your rights and responsibilities are.
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• You can also use the records to refresh the memory of others you are doing business with if you think they’re getting off
track.As a last resort when litigation arises, you can use your detailed records to convince a court to view things your way.
Reducing the Likelihood of Commercial Litigation

11. PROVIDE FULL DISCLOSURE
• Customers, suppliers and employees should have a full understanding of what you are offering to them.Whether you are giving a
worker a specific position in the company or a customer a specific product and warranty, you don’t want any unexpected surprises
that could cause anger and upset.
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• Disclosure statements should be accessible and understandable so everyone you do business with is clear on company policies
and transaction terms.When customers, suppliers, and employees know exactly what to expect, they can make an informed
choice about whether to take or leave the deal you’re offering.
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• On the other hand, if you make promises you can’t keep, you could find yourself being faced with a lawsuit by an angry individual
or company that feels misled.
Reducing the Likelihood of Commercial Litigation

12. ANTICIPATE POSSIBLE FUTURE CONTINGENCIES
• Your company may grow or expand in the future, or business partners may decide to leave.
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• You may need to hire more employees or secure financing in order to grow.Whenever you make any big decisions, consider how
the steps you are taking can affect the long-term goals of your organisation and about how problems could arise that affect that
future.
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• You can then plan ahead for these potential problems by creating contractual agreements that address contingencies and by
establishing a written company policy that limits your liability.

14. If the worst does happen and a disagreement arises, you need to be represented by a qualified and experienced legal
professional who can argue for your interests and advocate on your behalf.
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Call us today on 1800 770 780 or contact us via ohl@owenhodge.com.au to schedule an appointment with our experienced
commercial lawyers.
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1800 770 780
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www.owenhodge.com.au
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ohl@owenhodge.com.au