Any type of dispute, whether big or small or one that lands in court, can be a disruption to your business. It can cost you time, money, energy and other resources to pursue or defend the claim. Your reputation may also become tainted or you may develop bad relationships with vendors due to claims.
You need to be prepared, so assemble the right team — one that will handle the dispute and litigate on behalf of (or defend) your company. A good team consists of legal counsel, company representatives, a financial expert if appropriate, and industry or other experts to address specific portions of the lawsuit.
“Litigation can be an out of control process,” says Rebekah Smith, CPA, CVA, CFFA, director of dispute advisory and forensic services at GBQ Consulting LLC. “Assemble a group of experienced advisers that understand the litigation process. Your advisers can help you control costs and the process.”
Smart Business spoke with Smith about how to assemble the right group of advisers to handle your dispute and the importance of involving a financial expert.
Whom should business owners turn to at the first sign of trouble?
Legal counsel. Don’t take threats of litigation or indications that someone has a dispute with you or your company lightly. Take potential claims seriously and contact your legal counsel, rather than just assuming it will go away. Legal counsel can help assess the validity of a potential claim or a claim that has already been made and determine a plan of action. There are also certain legal requirements with respect to retention of data that your legal counsel can help you navigate.
What types of disputes require assistance from a financial expert?
A financial expert becomes involved when there are financial issues as well as legal issues. Financial experts are typically involved in complex commercial litigation where economic damages or lost profits are at issue. They are also involved when the cases requires forensic accounting skills such as in a fraud or embezzlement case or the value of a business is at issue such as in a shareholder dispute. A financial expert may also be called upon to explain an accounting, tax or financial issue to the judge or jury.
A financial expert may assist legal counsel in identifying the particular financial issues related to this case. Financial experts may also assist legal counsel in creating discovery requests, preparing for depositions of financial witnesses, or assisting with trial exhibits.
The financial expert can also assist in settlement negotiations. Many cases settle before reaching the courtroom, and a financial expert can assess whether a particular settlement option makes economical sense or not.