Be Wary of the Lawsuit Selling Lawyer

01/28/2012

0 Comments

 
Some lawyers, especially lawyers who exclusively bill by the hour,  sell their clients on filing a lawsuit.  It's not hard to do.  The client is upset because they have been wronged in someway, and the attorney  can direct the client's frustration and anger into filing a lawsuit.  Not all attorneys do this, but many do.  After all, what could be better for the lawyer than a client who will pay the lawyer on an hourly basis to battle it out in court?  And remember this - when it comes to most commercial litigation and pay by the hour lawyers, the lawyers take no risk because they get paid win, lose or draw.     

Before filing suit, ask the hard questions and demand hard answers:  How can a lawsuit benefit us?   What will we accomplish with this lawsuit, what will the ROI likely be, and is there a better way to go?   In addition, in many cases the business should consider hiring an independent and experienced litigator to coach them through the litigation decision-making process.  Having an experienced lawyer who does not stand to gain from filing the lawsuit will often help you make a better decision.

Add Comment
 

Risk Management & Mange Legal Costs - Rocket Docket Arbitration

01/28/2012

0 Comments

 
I'm not usually a fan of arbitration.  I have found that it costs just as much if not more than a court battle, and you cannot appeal an arbitration gone bad.   These are serious issues that every business owner and executive should discuss with their attorney.

Picture
I'm also not a fan of court battles because they take so long and cost so much.  When it comes to the consumption of pay by the hour legal services, time is money, and time is serious money when the trial date is 18 months away.

Here is a suggestion to consider.   You're not going to ever have a perfect litigation or a perfect arbitration. Things will go wrong no matter way.  The goal should be to get it over with as fast as possible so you can get on with your business.  If you agree with this philosophy, you may want to consider including a rocket docket arbitration clause in select contracts that:

(a) appoints a named arbitrator to handle all disputes;
(b) sets a hearing date deadline of 30 to 60 days from the date of the Demand for Arbitration;
(c) requires mandatory disclosure of evidence.

Having the lawyers battle for 30 to 60 days will cost you far less than having the lawyers battle for 547 days (18 months).  Win or lose, getting past the dispute as cost effectively as possible is often is the best thing that can happen for the business.   
Add Comment