In this series on defining wins in litigation, we’ve talked about defining the goals and strategies at the outset, clear and open communication, and the benefits of resolving a dispute both financially and reputationally. The final piece in this series discusses why mitigating the plaintiff’s damage recovery can also be a “win”. I can speak from experience because I have effectively used this strategy for a client.
Suppose your customer accuses your company of taking certain actions that violated the terms of your contract. After digging into the contract and some other communications between the parties, it is clear you breached the contract. It also appears that your employees’ actions violate a statute that allows the customer to recover punitive damages. The customer claims $500,000 in compensatory damages, and wants another $3 million in punitive damages. What do you do from a litigation strategy standpoint?
Continue Reading Defining a Win in Litigation: Mitigating Losses
If your business provides consumer-oriented goods or services, your reputation is very important to you. When I use the term “consumer-oriented,” I mean goods or services that are primarily used for personal or household purposes. That is not to say that businesses that do not directly affect consumers are not worried about their reputations. In fact, they are, because 
Henry Gale was having difficulty leasing his modest four-bedroom house in North Dallas. But his fortunes changed when multiple tornadoes blew through the city in late October, damaging multiple nearby homes. Suddenly faced with several offers, Henry doubled his rental rate and signed a twelve-month lease with the Diggs, a family whose home was undergoing a lengthy restoration due to tornado damage. But Henry’s elation turns to despair the next month when the Diggs sue him for “price gouging.” Are dark skies ahead for Henry?
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Does a “win” in litigation require a final judgment in your favor? Not necessarily. Litigation “wins” are defined by the circumstances facing a party at the outset of litigation, and how those circumstances change as litigation progresses. Over the next few months we will dive deeper into this topic, and talk about issues such as:
The 86th Texas Legislative Session has been in swing for almost two months, so we thought now would be a good time to highlight some proposed legislation relating to civil litigation that may affect your business.