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Business owners should take frivolous lawsuits seriously

On Behalf of | Oct 22, 2020 | Business Litigation |

When a business partner, supplier, or customer says that they will sue you, it can be tempting to write it off as an idle threat or view their claims as being without merit. However, your personal opinion on the issue doesn’t matter. In fact, from a legal standpoint, their claims may be stronger than they appear.

That said, a quick settlement may not always be in your best interest. If a lawsuit is indeed frivolous, you have options.

How does a court determine if a lawsuit is without merit?

A court will likely find a lawsuit to be without merit or frivolous if:

  • There are no factual or reasonable grounds to help support the underlying claim
  • The sole purpose of the suit was to tie up the defendant in litigation or was used as a tool of harassment

Attorneys who file a lawsuit that is frivolous or is in bad faith may be held liable for the defendant’s court costs and legal fees. The potential for liability is often enough to dissuade most attorneys from filing a frivolous lawsuit. That is why it’s important that you take all legal threats seriously. If a lawyer is acting in bad faith, you can address that issue at its proper time.

Keep yourself prepared

Unfortunately, the potential for litigation is often the cost of doing business. Anytime you’re facing the threat of litigation, it’s important to meet with a skilled legal professional. Preparing for every lawsuit as if it will go to court can help put you in the best position to protect your business interests. An attorney can let you know whether a claim is likely to proceed and what options are available to you.