Litigation is the process of going to court to resolve a dispute. For a small business, this might involve defending against a lawsuit from an employee, customer, or another company, or suing someone else. While the idea of litigation may seem intimidating, understanding the basics will give individuals and businesses a clear idea of the process and how to proceed.
The main steps in litigation
According to HR Review, a rising number of UK businesses are facing legal disputes that could affect their trade. This is why it is important to understand the steps in the process.
The first step in a litigation process is called ‘pleadings’, which is the filing and response to a complaint. The plaintiff files a complaint outlining their arguments and the defendant responds with an answer, either admitting or denying the claims.
The next stage is called ‘discovery’, which is where both sides gather information about the case that could be used as evidence in the event of a trial.
‘Pre-trial’ and ‘trial’ come next. At a pre-trial, parties can ask questions or even ask the judge to make a decision before commencing the trial. If no resolution at pre-trial is found, the trial is where all the evidence is presented. The judge then makes their decision on the outcome.
If either party is unhappy with the outcome of the trial, the ‘post-trial’ phase is where appeals can be made. It is only when the post-trial period ends that the decisions made by the judge can be carried out.
How much does litigation cost?
The expense of litigation will depend on the complexity of each case. For small businesses, litigation funding may be available to help cover some of the costs. More information is available from litigation funding specialists such as https://www.novo-modo.co.uk/litigation-funding.
Understanding the process of litigation is the first step to staying in control of legal disputes; however, for further peace of mind, it is a good idea to regularly consult with lawyers to ensure your business is protected from issues that may cause them.
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