Is it time to sue a supplier?

On Behalf of | May 31, 2023 | Business Disputes, Business Litigation |

Businesses are often built upon a foundation of strong contract agreements with partners outside the company, such as suppliers and vendors. Perhaps the supplier is hard to work with, but they offer quality hard to find products necessary for running a business. Perhaps the situation goes beyond being difficult, and they routinely violate the contract’s terms for arbitrary reasons. Whatever the issue, litigation may be the right solution for changing an unworkable situation that is causing the company revenue.

The general rule of thumb with litigation is that it is complicated, expensive and time-consuming. While the business may be within its rights to enforce a contract’s conditions, it also makes sense to think about it objectively.

Cost versus outcome

The aforementioned legal fees and court costs can add up. The potential plaintiff should speak with a litigator about whether the likely pay range or duty performance is worth it. The attorney should never guarantee results, but they can share an opinion on a winning scenario.

Can they pay?

Another issue with a lawsuit is payment. The plaintiff may win the case with a substantial monetary reward, but the plaintiff must collect their money. Collection may involve putting a lien on the defendant’s property, garnishing income, seizing assets, or other actions. It may be part of the plan, but the plaintiff should understand this beforehand.

Sometimes litigation is necessary

Despite the above concerns, there are many benefits to litigation. It can provide closure to a bad deal, set a precedent so others do not also take advantage of the business’s patience, or ensure that the other party honors the contract they signed. Not all attorneys are litigators, so discussing the potential lawsuit with someone who understands the process and the upside of litigating the dispute is essential.