Surviving a lawsuit.

• Author: Spendlove, Gretta
• Position: Of Counsel - Brief Article

In his book The Devil's Dictionary, Ambrose Bierce defined a lawsuit as "a machine which you go into as a pig and come out as a sausage."

Being processed, manhandled, and impoverished are fears businesspeople have when confronted with a lawsuit. Whether you're a plaintiff or a defendant, a lawsuit can really grind you down, as Bierce so colorfully pointed out. Here are some ideas for surviving, and even profiting from, the experience.

Understand what you're getting into

"A lawsuit is a major disruption, financially, emotionally and in running your business," says Salt Lake City trial lawyer Doug Parry. "The other side will go through your files, take the deposition of your CEO, and try to find out all your secrets."

Litigation is expensive, with attorney's fees for lawsuits that go to trial easily topping $500,000. "During the last few weeks before and during trial, your attorney will be working 14-hour days, which really increases the bill," comments Utah litigator Steve Marshall.

Businesses filing or facing lawsuits should first analyze the emotional and financial costs in light of their objectives, and be willing to commit the necessary resources in time, money and patience.

Examine your motives

"Going to court and trying a case is the worst way of solving a problem," says Marshall. "You're turning your fate over to a jury you don't know much about and who doesn't know you. Still, a lawsuit is sometimes the only way to get that problem solved when there's a lot at stake and the parties just can't agree."

Parry encourages clients to be practical. "If clients tell me their lawsuit is based on principle, I tell them to think again, because principle runs out as costs and disruptions increase," he says.

Establish a good working relationship with your lawyer. Marshall notes that there are "hands on" and "hands off" clients. "Some businesses turn everything over to the lawyer and expect the lawyer to do everything and decide everything. The problem with that is that the client ends up being surprised by how high the legal bills are or how things turn out."

By contrast, "hands on" types keep an on-going dialogue with their lawyer regarding the steps toward trial and the weak and strong points of their case. They read court memos and pleadings and discuss strategy with their lawyers. "There are fewer surprises for 'hands on' clients," Marshall points out.

Parry advises clients to carefully pick a lawyer, clearly articulate goals, and then trust...