Four Decades Of Legal Excellence

A business can face legal risk from different directions

On Behalf of | Aug 30, 2021 | Business Law |

It can be easy for a business operating in the Richmond area to think that the only threat of legal actions they will face is from a competitor, a supplier, a customer, or a disgruntled co-owner or investor.

They may also realize the possibility of property disputes with a landlord or even a neighboring business. Disputes with insurance companies are also common.

These sorts of business disputes happen more often than one would hope, and it is important for a Virginia business to manage them effectively.

It is tempting for a business to try to win these conflicts at all costs, and sometimes that is the right course of action. However, it is also important for the organization to preserve its resources and be mindful of the costs and benefits of litigation.

A business attorney can help an enterprise keep its focus on how litigation fits in to its overall goals.

Employment issues are frequently the source of business litigation

Organizations should be mindful that legal risks can come from other sources as well.

For example, both Virginia and the federal government have a network of laws designed to protect workers from unfair employment practices. These laws include anti-discrimination provisions and wage and hour laws.

Despite their efforts to avoid litigation, many Virginia businesses will face the threat of a lawsuit from a disgruntled employee or former employee. On a related point, the employee may also elect to file an administrative complaint with a government regulator.

Compliance with other regulatory rules is also important

Employment law aside, most businesses are going to be subject to some other government laws and regulations that to some extent are going to control how they operate. If a business violates these rules, then the government may initiate litigation to recover hefty fines and other penalties.

While the best way to avoid legal trouble with regulators is to follow the rules carefully, this is not always simple even for a well-meaning and honest business.

Many times, government offices have vastly different interpretations of their own rules with which a business may not agree.  Other times, the business may have made a mistake, but the agency has exaggerated the problem or is proposing a punishment that is too harsh.