June is the Month of Dads!

Each year, between 35% to 53% of small businesses are hit with a lawsuit, according to the Small Business Administration (SBA). With statistics like these, it may not be a matter of if your company gets sued, but when. To make matters worse, if you get sued, even if you win the case, you may still be on the hook for lawyer’s fees and court costs, not to mention the time you spend defending yourself. But by understanding the causes of potential legal trouble, you can take steps to prevent disputes before they occur. So here are three of the most common sources of litigation.

1. Lawsuits By Employees
Although you may not like to think that one of your team would ever sue you,
your employees (and independent contractors) are one of the most likely sources for litigation. In fact, nearly one in every five small businesses will get sued by a team member. The most common lawsuits arise when a team member needs to be let go, and he or she feels mistreated in the process. If you operate like many business owners, without clear employment agreements and without formal processes for hiring and firing, you may find out when it’s too late that you weren’t the great boss you thought you were.

From creating sound employment agreements, advising you on the appropriate insurance, and helping you establish effective workplace policies and procedures, as your Family Business Lawyer™–especially one well experienced in employment law — I can work with you to dramatically reduce your chances of getting sued for employment-based claims.

Alright, let’s talk about a second common source of litigation:

2. Lawsuits By Clients or Customers
Every business owner has to deal with unhappy clients or customers. You can’t please all the people all the time—but you can establish your process for selling your products and services to minimize the risk of court and conflict when you do have an unhappy client or customer. The way you present your client or customer agreement, what it says, and how it says what it says, plus how you get paid and handle customer complaints can mean the difference between an unhappy customer, who you turn into a raving fan, and an unhappy customer, who sues you. We help our clients turn client or customer complaints into learning and growth opportunities and head off future problems by creating template agreements and offering training on presenting those agreements for the best possible outcomes.

A third common source of litigation is Lawsuits For Third-Party Injuries.
If one of your team members is injured on the job, that’s typically covered by worker’s compensation insurance. But if a client, vendor, or another third-party is involved in an accident in your place of business, you can be sued for negligence, often known as a “slip-and-fall” lawsuit. If you allow members of the public onto your property, and a visitor can prove that you didn’t take the proper precautions, and he or she is injured; as a result, that individual can sue your company to pay for their medical bills, lost wages, and even pain and suffering. Your primary defense against personal injury suits is adequate liability insurance. We can recommend the best types and amounts of liability insurance for your business. Contact us to discuss your specific coverage needs.

Your Very Own In-House Legal Counsel
At the Gordillo Law Firm, we focus on keeping our business owner clients out of court and out of conflict. If that interests you, contact us to discuss the specific legal safeguards you should have in place. Whether it’s investing in the right insurance, reviewing and updating your agreements, or helping you navigate our state’s employment law, as your Family Business Lawyer™, we always have your back.