When is it Time for Your Business to Call a Lawyer?

Owning and operating a business in Maryland can provide great opportunities, but along with these come legal obstacles and risk. At some point in the life of a business, disputes are likely to arise – whether with vendors, customers, employees, competitors, or even business partners. Small businesses understandably have concerns about incurring the expense of consulting an attorney, but knowing when to do so can mean the difference between protecting your rights versus dealing with bigger problems later.
Consulting an attorney at the appropriate time can:
• Save your business money,
• Protect your reputation, and
• Prevent small issues from becoming major liabilities
Some of the following triggering events may seem like obvious times to consult with an attorney, but you would be surprised how may businesses wait longer than they should to have a consultation:
1. If you or your company has been sued, or has been threatened with a lawsuit
If you or your business receives a court complaint, a cease-and-desist letter, or even notification of a credible legal threat, an experienced civil litigation attorney can help by:
• Reviewing the stated claims with you,
• Assessing your legal exposure to the stated claims (or potentially to other claims), and your defenses to the claims,
• Responding appropriately to the person that made the claims, consistent with applicable law, and
• Helping you avoid making costly mistakes or damaging admissions.
Early discussion of legal strategy helps businesses resolve disputes before they reach court, and to move quickly and efficiently if a lawsuit has been initiated.
2. If you need to enforce a contract, or someone else is accusing you of breaching an agreement
If another company or person fails to honor the terms of a business agreement – for example, by not paying invoices on time, breaching contract terms, or violating a non-compete obligation – or if such an accusation is leveled against your company, an experienced litigation attorney can help by:
• Evaluating the strength of your claims or defenses,
• Sending a formal attorney demand letter to the other party, and/or
• Filing a breach of contract lawsuit in the appropriate court – or filing a defensive pleading, if another party has accused you.
Experienced litigation attorneys are skilled in negotiation, and in courtroom rules and process, which gives your enforcement effort credibility from the start.
3. If you are involved in a dispute with partners or with other members of your limited liability company
Conflicts among business partners, LLC members, or shareholders in corporations are surprisingly common, and can quickly impact company operations. Common issues include:
• Disagreements about money or decision-making,
• Allegations of breaches of fiduciary duty, and
• Ownership disputes or attempts to force buyouts.
An experienced business litigation attorney can help you pursue or defend against lawsuits seeking business dissolution, injunctions, or damages for claimed breaches of fiduciary duty — and protect your stake in the business.
4. If you suspect fraud, misappropriation of funds, or unfair competition
If an employee or co-owner is engaged in fraud or misappropriation of company funds, or if a current or former employee or co-owner has breached a non-competition or non-disclosure agreement, or is misusing company trade secrets, you may need to act fast. An experienced litigation attorney can guide you through:
• Seeking temporary restraining orders or preliminary injunctions,
• Filing lawsuits for monetary damages or specific performance of contracts, and/or
• Preserving important evidence using court processes.
5. If you want to avoid future litigation
Sometimes the best reason to consult an experienced business attorney is to prevent future litigation. An attorney can review and suggest improvements to your:
• Corporate bylaws or LLC operating agreement,
• Contracts or vendor agreements,
• Employment policies and handbooks, and
• Customer service terms or disclaimers.
You want to spot potential disputes before they arise and draft agreements that stand up in court – saving you time and money in the long run.