If your company is facing the prospect of a lawsuit, here are some tips for reducing and avoiding expensive and time consuming litigation costs.

• Proactive approach instead of reactive. Use only well written contracts, leases, employee agreements and similar documents (preferably prepared by a qualified attorney) that spell out all terms of the agreement.
• Prepare in advance. It is extremely important to identify the strengths and weaknesses in a case early. With accurate information up front, good decisions can be made based upon the strength of the case in order to avoid bringing suit or to seek an early settlement.
• Early Mediation. Even in a hotly contested litigation where the parties appear to be unlikely to settle, a skillful mediator, can often focus the parties on the weaknesses and strengths in their respective positions and facilitate a mutual understanding. A successful early mediation can save much of the costs that would have been expended, if the case were fully litigated.
• Continuously Assess your Case. The dynamics of a lawsuit are constantly changing. The discovery process may reveal information that alters the perceived value of your case. Make regular assessments of the situation based upon the evidence, cost and potential exposure of a bad outcome or the possibility of a good outcome. Consider how the judge or jury will perceive the evidence. Will the adversary’s evidence be more or less compelling than yours.
• Consider a reasonable settlement offer. Always prepare the case completely and zealously, as if it will be tried. However, at the same time explore all opportunities to settle and develop a strategy to create a desire in your adversary for settlement. A strong offense creates some leverage at the negotiation table.

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Sources

http://www.metrocorpcounsel.com/current.php?artType=view&artMonth=April&artYear=2010&EntryNo=10792

http://www.mediates.com/drsusingmed.html

http://pss-systems.com/resources/three_ways_to_reduce_litigation_costs.pdf