The average settlement amount for a business dispute varies depending on the type of dispute and the amount of work you put into reaching a fair settlement. At Mallery s.c., our experienced lawyers regularly guide clients to resolve disputes through business litigation, mediation, and arbitration.
It’s no secret that litigation is expensive, even in Wisconsin. One study presented to the Judicial Conference of the United States found that Fortune 200 corporations spent an average of $140 million on outside litigation in 2008. Additionally, businesses reported litigation costs ranging from $3,000 to $150,000 to the Small Business Administration in 2003. The financial costs threaten to put many business owners out of business. You may wonder if offering a settlement “just to get it over with” is the right thing to do.
When you call the attorneys at Mallery, we will provide professional and honest advice for resolving your particular type of dispute. Our firm will advise you on if it is worth pursuing a lawsuit or if the benefits of winning will outweigh the costs. We will guide you on the best approach to maximize your results and ensure you spend your money wisely.
The Average Business Dispute and Settlement
Depending on the type of dispute, you may need to offer a higher or lower value for a fair settlement. Consider the value of these three types of disputes and how to avoid litigation:
- Customer satisfaction,
- Employee complaints, and
- Business issues.
First, every business owner wants to please their customers, and word of mouth is essential for a profitable business. Common approaches to resolving customer disputes include reducing the invoice or providing additional services to alleviate the customer’s concern. However, the best approach is to be proactive.
Next, while a business owner wants to respect their employees, conflicts can occur when making hiring and firing decisions or if an employee acts negligently. Having a carefully developed and streamlined process for hiring and firing employees—and applying that policy consistently—can help avoid claims of unfairness or discrimination. And having proper insurance coverage can help if an employee is negligent.
Finally, we have helped clients deal with complex business issues, such as class actions, shareholder lawsuits, derivative actions, and antitrust disputes. When you do business with suppliers, contractors, purchases, or other business partners, you are likely to run into disputes. When you agree to exchange products or services with another business, it’s essential to put the deal in writing.
For example, many technology companies have disputes over intellectual property ownership. They should head off disputes by using non-disclosure agreements or ownership assignment provisions to protect the business and the employees. Construction companies may face complaints after following a flawed design if their contract doesn’t specify responsibility for the outcome. To win in these cases, you’ll need evidence that the business followed established procedures and fulfilled its side of the bargain.
Alternatives to Litigation
Many business owners would prefer to settle disputes before trial, which is often the best course of action. Going to court has many implications for a business other than the costs, including loss of production time, decreased reputation, and an emotional toll on the owners. Fortunately, there are many options for negotiating a fair outcome, including a settlement offer, mediation, or arbitration. Nonetheless, the opposing party often refuses to meet and negotiate, which forces the dispute into court. No matter the forum, your lawyer will be able to advise you on when to fight or if it might be best for you to offer a settlement.
Mallery: Experienced Attorneys
We see many clients dealing with business issues. At Mallery, our attorneys can help with disputes involving
- business formation,
- business sale, purchase, or financing, and
- environmental and regulatory compliance issues.
Further, we can help your business protect its ownership interest by creating and negotiating partnership agreements, operating agreements, non-compete, and non-disclosure agreements, consulting agreements, and indemnity agreements. Whether your dispute is large or small, if you’re facing business litigation and wondering, What is the average business dispute settlement?
It might be time to call an experienced lawyer. At Mallery, we’ve helped clients of all sizes and types resolve business disputes fairly and efficiently. We can help you decide to offer a settlement or continue toward mediation, arbitration, or a court hearing. Our trusted advisors will provide you with the information you need to know as you move toward resolving your business dispute with your dignity and well-being intact. Contact our office today.