Business Litigation – Recent Business Lawsuits and Their Causes
Recent business lawsuits are causing quite a stir in the business and financial communities. Some see these lawsuits as an obvious overreaction on the part of an unprofessional lawyer or in some cases a case of greed on the part of a corporation or perhaps even an insurance company. These lawsuits are causing a lot of controversy because often times, they contain details that are too graphic for the general public to easily understand. In one recent example, a business was sued for failing to appropriately protect its employees from lead paint hazards. While the details were graphic, it is important to point out that this particular lawsuit was settled out of court.
Other recent business lawsuits have involved well-known manufacturers and companies like AIG, GE, P & G, Merck & Co. and Prudential Insurance Company.
The lawsuits themselves can be quite shocking, especially when you consider the billions of dollars that corporations spend each year on litigation. While the overall settlement amounts do vary, a recent analysis showed that the overwhelming majority of recent business lawsuits resulted in substantial settlements rather than major verdicts.
The reason why there has been so much recent business lawsuits is because of the complexity of today’s business environment.
There are thousands of new products and technologies being introduced each year. While these creations may benefit a company in the short term, the potential long-term consequences are not always considered. For example, it is not uncommon for newly designed drugs or other products to cause toxic shock or other unforeseen consequences. When a company does not have enough safety protocols in place, these unfortunate situations become much more likely to occur.
As a result, many recent business lawsuits result in significant settlements.
However, these are just the opposite in recent years. There has been a steady increase in recent lawsuits leading to verdicts that could have major long-term impact on a company’s stock price or quarterly profits. There are also cases where companies have been sued for breach of warranty or for not manufacturing a product that was promised. It is not uncommon for companies to be sued over products that simply don’t exist at all, or over products that cause ill effects but do not actually do what they claim to do.
As the complexity of today’s business environment continues to increase, more businesses are turning to outside advice in the form of arbitration to resolve these common disputes.
Arbitration is a process in which one party decides to resolve a dispute either through a court trial or through a written agreement. It is a process in which an impartial third-party is responsible for reviewing the facts and determining who is at fault for the dispute. This process often results in a settlement that will leave both parties feeling satisfied with their outcome.
In some instances, arbitration can be a very effective method of dispute resolution.
Especially where there are a sizable number of potential disputes that must be resolved quickly and fairly in order to preserve the business image or employ a particular employee, arbitration can often provide a smooth transition from lawsuits to contract negotiations. This process is often preferable to resolving a case through the courts because there are fewer chances for a business to be severely affected by a decision that it loses. When an arbitration dispute arises, however, it is always advisable that the business or company to retain an attorney who has experience in dealing with similar cases.
