Why Lawsuits Don't Pay

To quote General Norman Schwarzkopf, "The difference between conducting music and troops, is that in war the orchestra starts playing, and some son of a [gun] climbs out of the orchestra pit with a bayonet and starts chasing you around the stage." It's the same in a legal battle. The one pursuing the opponent often ends up more bloody than the one he is pursuing.

Here is a list of reasons why lawsuits don't pay:

1. The plaintiff (the one suing) is digging a financial hole for himself due to the high legal fees. Since the US does not have a loser-pays legal system, that financial hole would have to be re-filled back to zero before any financial gain is realized. So, suing is putting oneself at a financial disadvantage from the beginning.
2. The defendant (the one being sued) is also digging a financial hole for himself because he will also incur legal fees. This means that the defendant will have less money to pay the plaintiff even if a lawsuit is successful for the plaintiff. So, both sides end up below ground zero.
3. The defendant may not actually have the money the plaintiff is seeking.
4. The defendant will likely do all that is within his power to keep the money from the plaintiff through spending, hiding, protecting, bankruptcy, etc.
5. Plaintiffs tend to be so convinced they are right they are often blind to the possibility of opposing arguments. Believe it or not, the defendant may have a much better argument that would be much more convincing to a judge.
6. Lawsuits are extremely distracting and time-consuming, zapping one of creative energy required to run and operate a business at peak effectiveness. Ever been in a 6-hour deposition? Ever have to answer a 35 page interrogatory and be required to provide a multitude of documents? Then you know what we are talking about.
7. Strong force meets strong opposition. When someone feels forced to pay someone else money, there is a natural tendency for fierce opposition and lack of cooperation from the opposing party. Alternative dispute resolution tends to be more effective, and less costly generating much more favorable results for both parties.

Alternative Dispute Resolution

1. Call the opposing party. You may be surprised with how far you get. Both parties want to avoid lawsuits, so get on the telephone or set up a meeting and express your views to each other and come to an agreement. If the other party won't take your call, pass a message along that you would like to get things resolved without a lawsuit. Incidentally, attorneys will often discourage people from calling the other party. This is often because they know if the parties can reach a favorable solution, their services will not be needed.
2. Get a mediator. Rather than filing a lawsuit, give the other party a chance to meet with you and a mediator. You'll likely want to bring an attorney along to the mediation. You don't want to spend $100,000 in legal fees only to be surprised that the other side has more convincing evidence than you do.