1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

Dallas Business Law Attorney Discusses “Litigation-Proofing” Texas Small Businesses

Dallas business law attorney, Richard “Ric” Armstrong, gives common-sense tips on how Texas business owners can protect themselves and their companies from lawsuits.

When you own and operate any kind of business, you inherently run a risk of getting sued. It comes with the territory. Sometimes, these lawsuits may be frivolous, while at other times, a former employee or customer may have a legitimate complaint. Either way, litigation costs can run in the thousands of dollars, even if the suit is unfounded—so the more you can do to safeguard your business from these threats, the better. While you can’t control whether someone attempts to sue you, let’s look at some steps you can take to reduce the risk of litigation.

Remove Personal Property from the Equation

In some types of businesses—like sole proprietorships and partnerships— the individual owners may be directly exposed to legally liability in a lawsuit. In many jurisdictions, this can put personal property like homes and investments at risk. Protect your personal assets by setting your business up as a separate legal entity, like a corporation or LLC. That way, if you do face litigation, only your company assets are at risk.

Live Up to Your Obligations

Once you’ve spelled out your responsibilities to your employees, customers or associates, make sure you live up to those responsibilities. Don’t promise anything on which you can’t deliver. Keeping your company’s word is your best front-line defense to safeguard against litigation.

Consider Including a Mediation/Arbitration Clause

One proven way to safeguard against litigation is basically to write it into the contract by including an arbitration section. This section basically states that by signing the contract, the customer/employee/associate agrees to private mediation/arbitration with you to resolve any disputes, as an alternative to court. Independent arbitration in many cases can be more economical than litigation.

Make Contract Language as Clear as Possible

Litigation thrives on ambiguity. Whenever you enter into a contractual agreement with an employee, vendor or business partner, make sure the terms of the agreement are spelled out in crystal-clear language so each party understands their rights and responsibilities. Make sure the other party understands any risk they are assuming, and insert disclaimers that hold you harmless for events that may be outside your control.

Always consult with a Dallas business law attorney when creating legal documents to ensure the language protects you as much as possible. For additional representation either in preventing or defending against litigation, call Armstrong The Law Firm, P.C., today at 972-424-L-A-W-S (5297).

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

Fort Worth Location (By Appointment Only)
5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297