It's a sad fact of modern business life that, from time to
time, we find ourselves in dispute with a customer, supplier or
regulatory body. Disputes of this nature are usually costly and
time consuming.
When disputes arise certain key steps should be followed.
Step 1 – Assess your position
Find out how strong your case is, the best way to deal with the
dispute will vary depending on the strength of your position.
Examine all the documents between you and the person you are in
dispute with.
Cases are won and lost on what is said in documents and so, when a
dispute first arises, make sure you preserve existing documents and
always consider how a judge would view any email or letter before
you send it.
Step 2 - Consider what result you want
Once you know how strong your position is, consider what your
objectives are.
Do you want to win? Of course you do, but what does a
"win" mean in your particular case.
It might be that your position is strong and you want to make an
example to stop others from raising such disputes in the future. In
such a case, you might be willing to pull out all the stops and
fight the case all the way. However, such an approach may be
expensive.
At the other end of the scale, you might want to continue what has
been a good commercial relationship with your opponent.
Step 3 - Know your opponent
As well as knowing what you want, it is important to have a good
idea of what your opponent wants. Do they want to fight the case?
Do they have the money and time to do so?
It might be that you have a 50% chance of success but you know that
your opponent could not afford to pay the costs it would take to
fight you. If so, this puts you in a strong negotiating
position.
Alternatively, it might be that you could spend a lot of money,
time, and effort and win your case but your opponent doesn't
have the money to pay you and is simply forced into
liquidation.
Step 4 - Costs and benefits
You will need to know what the likely outcomes, cost and timescales
of any course of action. Only then, can you really make a decision
on strategy.
Always take time to examine the likely cost against the benefit and
likelihood of a particular outcome.
Step 5 - Plan your campaign
Once you taken the above steps and taken legal advice, it is now
time to plan your campaign. What tactics would be best to achieve
the outcome you want?
A dispute doesn't always have to be resolved in a courtroom.
Mediation, expert determination, arbitration or direct negotiation
might be more suitable alternatives.
Finally
No two disputes are the same and the best way to get out of a
dispute to your best advantage will largely depend on a careful and
early analysis of the situation and planning a strategy. There
really is no substitute to taking legal advice as soon as
possible.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.