You are about to close the office for the year, and you receive some bad news. Someone is threatening to sue your company. With the Christmas party just hours away, and a bunch of shopping still to do for the holiday, this is not what you need to hear.
Rather than relaxing with friends, colleagues and family, you get to spend your holidays stressing about a lawsuit.
Not all lawsuits end in court
The first thing to remember is that not everyone who threatens a lawsuit wants to bring one. Many people use it as a threat or a warning shot that they are unhappy about something. If you can quickly address the issue to their satisfaction, that may be the last you hear of it.
Second, even when someone is willing to push things a little further and contract the services of an attorney, it still does not mean they want to go to court. That will require an additional commitment of time and money on their part. Often they would prefer to settle out-of-court.
Consider your ideal outcome
Look at who the person complaining is. If it is a valuable client that you want to keep, you may decide a pacifying attitude will pay off in the long run. If you would rather be rid of someone, maybe this is your chance.
Assess where you stand
You might not know anything about the issue, yet someone in your company may do. A quick meeting to find out more could be enough to avoid you losing sleep over nothing. Have you broken a business contract? Or, does the complainant lack a legal leg to stand on?
Facing litigation as a business owner is not a pleasant prospect. Starting to deal with it sooner means you will be finished with it sooner too.