Litigation risk is the possibility that legal action can be taken against your company due to several reasons. In most cases, corporations use risk analysis to determine how high their litigation risk is. If certain areas are found to be vulnerable, it’s the responsibility of the company to mitigate the risk. Since we live in such a litigious society, large corporations should understand that they can be sued at any time. If the lawsuit has merit they could stand to lose a significant amount of money from a plaintiff; this is why you should have measures in place to eliminate or reduce the risk of litigation.
If you’re an individual or a corporation that’s in need of litigation support, contact the professionals at Nesso Tax in Connecticut for help. We’re a full service tax firm that can handle any type of tax difficulties, from tax returns and planning to business consulting and reporting. Our experienced professionals are fully committed to understanding your specific tax situation and helping you with your issues. We’ll always have your best interest in mind and will keep you fully abreast of everything regarding your case. Connect with us today by filling out our online form.
Understand Our Litigation Support Services
If you or your company is sued, you’ll likely have many questions as it can be a very difficult and confusing time. One of our tax specialists will be able to answer all of your questions and help you better understand why risk assessment is so important. Risk assessment is when we evaluate juries to understand the potential level of risk. Some key elements of litigation risk include the following:
- The possibility of the company or person facing legal action.
- The litigation risk can be due to products, services, actions, or more.
- Large companies are more susceptible to litigation risks.
- Accessing litigation risk means determining resolutions.
- Legal action can be taken by vendors, customers and even other businesses.
There are many factors involved and it isn’t always accurate. However, at Nesso Tax we have professionals who offer a lot of good advice. If the lawsuit is going to drag out over months or years, it’s essential to have someone in place to help stay the course. The right financial decisions and strategies can help you save a lot of money and effort.
Areas That Our Litigation Support Will Cover
Damages and liabilities are the two areas where our litigation support will be the most beneficial. With liability, a lot of scientific research is used to determine what the jurors feel. Of course, this can vary wildly. In some cases, juries may find liability is on more than one party, but it’s possible to estimate how much liability goes to your company. With this information, you’ll be able to make the best decisions.
After assessing the liability, we’ll determine the range of damages. Again, there are a number of methods we can use to determine how much damages will be awarded. Predicting damages is a very important part of the litigation risk assessment. For instance, you’ll need to know the worth of the case. A $50 million case that is really only worth $20 can be problematic. This is the time to implement strategies that will help during the mediation or negotiation process.
Some special considerations regarding litigation risk include the mounting cost of a legal defense; this can be significant if the suit is dragging on for months and years. There are times when companies will have to weigh the good against the bad. Would it be better to offer a settlement? At the same time, the sheer cost of litigation can literally break a company, causing them to close permanently. At Nesso Tax, we understand how stressful this process can be when you have to go through it alone. But with our help, you won’t have to make decisions on your own.
Types Of Litigation Risks We Consider
Litigation can be the result of many different things. If a customer has an issue with the product or service offered by your company, they can sue. This type of claim can include some type of harm they received, a disruption, injury or anything else that happens due to that service or product. A company can also be sued if a contract has been breached, intellectual property, patents, and more.
A company’s financial performance due to bookkeeping, or lack thereof, can also be scrutinized. Shareholders have a right to bring suit if they feel there’s some type of financial accounting discrepancies – be it intentional or unintentional. These examples are just a few reasons why you need to take steps to protect your business. Our professionals at Nesso Tax can discuss these risks with you in greater detail so that you’re always aware of what might come your way.
How We Help You Manage Litigation Risks
The best way we can help you manage your litigation risks is by installing preventative measures. The key is to act quickly so it won’t escalate into something that you can’t manage. Remember, litigation can be very time consuming, but sometimes it’s impossible to avoid it altogether. If you employ certain steps, it can go a lot smoother.
We’ll encourage your company to be proactive. Waiting for things to happen is never a good idea. Taking the situation head on will go a long way in preventing it from turning into a legal battle. Most importantly, you must understand that litigation risk is more than an issue of money. Your company brand is also on the line, and it doesn’t take much for customers or shareholders to lose confidence. Nesso Tax has the experience and know-how to help you avoid or manage these risks. We’ll be there to guide you step by step.
Steps We Take During Litigation Support
There are some basic steps we can take and things we can ensure during the process:
- React to the situation as quickly as possible to prevent escalation.
- Discuss all issues in good faith and treat adversaries in a fair manner.
- Try to focus on the best solutions to solve the problem rather than dwell on mistakes.
- Avoid playing hardball. This means using scare tactics, threats, or harassment.
- Listen to the other party clearly and effectively.
- Even if the other party is seemingly unreasonable, maintain the calm.
- Understand that there are many forms of communication.
Other things we can do to minimize litigation risk is to help you get an early case evaluation; this is one of the best ways a company can go if a dispute fails. With an early case evaluation, everything can be reviewed. For example, any type of allegation, the amount of money, and even the company’s weaknesses and strengths.
It’s also essential to have good record keeping. We can help you keep all documents in a secure location and in an organized manner. Any type of important document relating to contracts, disputes, and government paperwork should also have copies. Even if you think something may not have relevance, we suggest keeping it anyway. It could be important in the long run. Certain paperwork can also be an effective bargaining tool in reducing the chance of litigation.
The Goal Of Our Litigation Support Services
Remember that avoiding tax litigation is the ultimate goal. While disputes can and will arise, the best thing you can do is prepare to face it head on. Working with the right team is crucial; you need a litigation support team that always has your best interest in mind, and Nesso Tax will do just that. Litigation can be bad for business and harmful to your brand. It can be a time consuming process that can be detrimental to the business, employees, and to shareholders. But with our help, lawsuits can be much more manageable.
Be open to a whole range of strategies. Remember, the goal is to avoid escalation. In addition, even with the bad associated with litigation risk, there are some good things that can come of it. Mainly the fact that certain precedents can be established to give your company more confidence.
Gain A Team Of Tax Experts To Help You With Litigation
If you live in Connecticut and you need litigation support, reach out to Nesso Tax. We can provide you with the quality, comprehensive services you need. Nesso Tax will never gloss over your problems. We’ll make sure everything is looked into and that you understand the situation entirely. Whether you need assistance with your litigation process, your tax returns, or tax planning, we’ll be there for you. We want to help you establish a long term relationship with our company; one where we can help your business grow.
All of our tax services vary depending on the client and other factors. We’ll design and help you implement a plan based on the specific needs of your company. Allow us to find the solution you need to navigate through what can be a very stressful time. As part of the Nesso Group, our goal is to make your life easier so that you can focus on what’s important: running your business. Contact us today, one of our agents will be more than happy to answer all your questions.