In today’s Freedom Friday blog and email newsletter, I want to talk about another topic that doesn’t come up often enough, and maybe sometimes too late. I want to talk about business disputes that are heading to court. If you have a business dispute that is coming up, regardless of whether or not you’re considering filing a lawsuit or you think you are going to need to defend one, you need to review your contracts, assess risks, and consider whether or not the dispute can be resolved without litigation. When you’re dealing with a business conflict or dispute, it’s easy to react quickly. A demand letter, a missed payment, or a breakdown in a business relationship can create pressure to act. However, if you take a step back and prepare for business litigation, you will be in a stronger position. In today’s Freedom Friday blog and email newsletter, I’m talking about how to prepare for business litigation in 2026.
If a business dispute gets going, even before a lawsuit is filed at the courthouse, your first priority needs to be to understand what happened and identify your rights. This process starts by gathering information. You need to collect all relevant contracts, emails, invoices, and communications; identify the timeline of events; confirm who the parties to the conflict are, including any related entities; and avoid making statements which could be used against you. Informal communications can become evidence so be careful sending emails or text messages, because one of those sent in frustration can complicate your position later.
Whatever contracts involved, if any, may control how a dispute must be handled. Before taking any formal steps, you need to review the contract or agreement carefully. Look for provisions such as forum selection clauses, choice of law provisions, alternate dispute resolutions, and any notice provisions which require advance notice in writing before filing a claim. These clauses may determine where a lawsuit can be filed, what state law applies, and can require the parties submit to mediation and/or arbitration instead of litigation filed at the courthouse.
At the same time, you need to consider if the dispute can be resolved without litigation. You may be able to resolve the dispute through direct negotiation (including through attorneys), a structured demand letter, or mediation through a neutral third party. All of these steps may reduce costs and limit disruption to your business. However, timing matters, and you do not want to wait too long to act because the same can affect your legal rights, including the deadline to file a lawsuit.
When a dispute is likely, or already occurring, you have a duty to preserve relevant evidence and failure to do so can create serious legal problems. You should take steps to preserve emails, text messages, and internal communications; secure electronic records; retain financial documents and transactional records; and pause any routine document deletion process. If a lawsuit is filed, both sides will request documents through discovery. Having complete and organized records can make a meaningful difference in how your case develops and can strengthen your position.
Not every business dispute involves a strong legal claim. Before filing a lawsuit or responding to one, you and your attorney need to evaluate both the risk to your business, and the opportunities involved. You and your attorney should consider whether there was a clear breach of contract or a breach of another legal duty, the amount of damages, the availability of evidence to support your position (either prosecuting the case or defending it), and the possible defenses or claims the other party may have. Considering these different factors will help you decide whether the case can be settled, litigation is necessary, or another approach should be taken.
If you or your business is served with a lawsuit, time is of the essence. You normally have twenty (20) days to file a legal response which is called an “answer”. If you receive a lawsuit, don’t ignore it, contact your attorney, and calendar twenty (20) days for a response to be filed. Gather your records, notify internal stakeholders, and avoid contacting the party who sued you or your business directly regarding the dispute. Missing a deadline can result in a default judgment; if you are served with a lawsuit, contact your attorney right away as time is limited to file the “answer” to the lawsuit.
Thinking about starting a small business? Or maybe your small business is having issues with contracts, leases, business partners, collection issues, or experiencing other barriers to growth? Please contact me at Jonathan@libertylegalok.com to schedule a FREE strategy session.
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