When negotiation fails, litigation prevails
When it comes to business law, negotiations are often the first step in resolving disputes between parties. Negotiations are less formal and less costly than litigation, and they can be an effective way to reach a mutually beneficial resolution for both parties.
When To Negotiate
When there is a chance for a mutually beneficial resolution: Negotiations can be an effective way to reach a mutually beneficial resolution for both parties. This can be especially true in cases where both parties have something to gain or lose, and there is a strong incentive for both parties to come to an agreement.
When there is a need for confidentiality: Negotiations are typically less formal and less public than litigation, which can make them an attractive option when there is a need for confidentiality. For example, if the dispute involves trade secrets or other sensitive information, negotiations may be the best option to protect that information.
When time is of the essence: Negotiations can often be completed more quickly than litigation, which can be an important consideration when time is of the essence. For example, if a dispute is preventing a business from operating or a contract from being fulfilled, negotiations may be the best way to resolve the dispute quickly.
Negotiations can be an effective way to resolve disputes between parties, but there are times when negotiations are not effective, and it may be necessary to move on to litigation
When to Quit Negotiating and Begin Litigation
When Negotiations Are Not Making Progress
Negotiations can be time-consuming and costly, and if they are not making progress, it may be necessary to move on to litigation. When the parties are not able to come to an agreement, or when one party is not willing to compromise, it may be necessary to seek a resolution through the courts.
When One Party Is Not Acting In Good Faith
Negotiations are based on mutual trust and good faith, and if one party is not acting in good faith, it may be necessary to move on to litigation. For example, if one party is not providing all relevant information or is not being truthful, negotiations may not be effective.
When One Party Has A Strong Legal Position
In some cases, one party may have a strong legal position, and litigation may be the best way to enforce that position. For example, if a contract is clear and specific, or if a party has a valid patent or trademark, litigation may be the best way to enforce those rights.
When There is No Other Recourse
In some cases, negotiations may not be an option, and litigation may be the only way to resolve the dispute. For example, if a party is unwilling to negotiate or if negotiations have broken down, litigation may be the only way to seek a resolution.
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Litigation can be both time-consuming and stressful. In such a time, it is more important than ever that the relationship with your attorney be based on trust. When businesses and individuals are the centers of a lawsuit, the attorneys at DumasNeel provide skilled and experienced representation. Our legal team has successfully represented clients in a wide variety of cases including breach of contract, derivative action suits, corporate minority rights, and deceptive trade practices act (DTPA) claims.
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