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Common reasons for business litigation

Hubbard Snitchler & Parzianello

Business litigation can come out of the blue. It can occur for reasons you never even considered. There are three categories of people that could take you to court: employees, other businesses and the general public. These are the most common reasons for business lawsuits:

  • Employment law: Having clear employment policies in place, and an adequate employee handbook can reduce the chance of meeting your employees in a Detroit court. Be sure to comply with state and federal labor laws. Failure to do so could result in claims for harassment or discrimination, or wage and sickness leave issues.
  • Safety: Failure to implement adequate safety policies and procedures could lead to workers’ compensation claims, premises liability claims and other personal injury claims, either from workers or members of the public. Make sure you have adequate insurance in place to protect you.
  • Intellectual property: Failing to carry out proper checks could lead to claims against you by companies who believe you have stolen their intellectual property. Failure to protect yourself, through copyrights and trademarks, could mean you need to take another company to court. Remember, some employees will have access to valuable information that you could protect through targeted non-compete agreements or non-disclosure agreements.
  • Local and national rules and regulations: Ensure you obtain the correct licenses and permits to operate in your chosen field and location, and stick within the stipulated boundaries. It is vital you are aware of and comply with environmental standards to avoid damaging the area you work in and your reputation.
  • Tax laws: Accountancy errors or inconsistencies could land you in court facing federal prosecutors.

However bright your business idea, however ripe the market, and well-executed your business plan, it only takes one lawsuit to end it all. An experienced Detroit business litigation attorney can help resolve any business disputes or fight any lawsuits.

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