Avoiding a Legal Crisis

legal crisisLawsuits are every business owner’s worst nightmare of a legal crisis. Contemplating the hours and dollars that become lost to legal challenges can set a CEO’s head spinning. The truth of the matter is that many lawsuits and the associated headaches can be avoided with some smart moves early on.  For those lawsuits that simply cannot be sidestepped, there are ways to protect personal finances if you just make some informed choices from the get-go.

Avoid a Legal Crisis by Choosing the Right Business Setup

Bankruptcy is a real possibility for anyone who sets up a business as an individual or a partnership. Avoid this disaster by incorporating and/or creating a limited liability company (LLC). This simple step protects your personal assets from claims made against the company and other debt.

Respect Your Employees

When you treat people as valued members of the work community, you are less likely to create the feelings of resentment that often precede the filing of a lawsuit. While nothing can ensure protection from being sued, dealing respectfully with others, even in the face of necessary discipline or bad news, can only increase the chance that you are admired and respected in return.

Discrimination Will Lead to a Legal Crisis

Make sure the message is strong and clear from the top down: Discrimination will not be tolerated. That applies to race, culture, gender, sexual orientation, religion, and any other category you can name. Managers who hate piercings need to keep their opinions to themselves; chauvinists must set a cordial tone at work. As the business owner, you set the culture of the workplace. Let it be known that every member of the team is to be treated fairly at all times.

Put Policies in Writing

If everyone knows the expectations in the workplace, you are much more likely to get compliance. Beyond that, your written policy backs you up in the event discipline is required.

Comply with Accessibility Laws

The most common lawsuits filed against California businesses deal with ADA compliance issues. The Americans With Disabilities Act was written to protect individuals and to provide equal access and opportunity. If you have questions about whether or not there are accessibility problems, have an evaluation of the property done and get a written legal opinion as to the acceptability of the premises to ADA regulations.

Document Employee Discipline and/or Termination

When an employee feels wrongfully terminated, the best way to save yourself from an ensuing legal crisis /retaliation is to have a well-documented paper trail proving that you proceeded through the termination process with due diligence.

Think Twice about Advertising Strategies

Be aware that if you make claims about other companies, and those statements have an adverse impact on their profits, you could be sued. Before you say something you might regret, have an experienced business attorney review the content of your message.

Put Your Best Foot Forward

Running a business is not for the faint of heart. Avoid the pitfalls associated with lawsuits by consulting with a local business attorney before you run into problems. At Beck Law, our legal team can help you get all your ducks in a row. If you are in Sonoma County, Mendocino County, or Lake County California, contact our knowledgeable team today in Santa Rosa to address your business questions.


The information on this website should not be considered to be legal advice, nor construed to be the formation of any manner of attorney client relationship. Prior to taking any form of legal action, please consult with an attorney experienced in the appropriate area of law germane to your situation. Case results and testimonials presented on www.californialaborandemploymentlaw.net or any of its related websites are germane to the facts present for each individual case and is not a promise of similar outcomes for any other cases. This website is not intended to solicit clients for matters outside of the State of California.