If you are in a business contemplating suing a third-party, there are several considerations that you should make before moving forward:
Do you have a “good” case? Be sure that you have a genuine legal claim that will likely have a court’s support. You should also consider whether you’ll be able to produce the relevant evidence to support your claim. If you have doubts, you might want to consider settling outside of court with the help of an attorney.
What type of civil lawsuit would you be involved in? Businesses are commonly involved in either employment lawsuits, insurance lawsuit, cases where one party owes another money, breach of contract suits, or tort actions. If you believe that your case involves fraud, such suits tend to be more difficult to prove, in some cases resulting in a lengthier process.
Are you suing the correct party? Knowing the proper party to sue is important, because it will likely affect the amount of damages you can recover if you prevail in a lawsuit. It will also help you to better predict the difficulty of your lawsuit and your likelihood of actually recovering.
Where will you be able to sue? If you are suing a defendant from a different state, a Colorado court may not have jurisdiction over them. In that case, you may have to sue the defendant in their location, which would likely be more inconvenient for you.
Are you within the applicable statute of limitations? Verify with a lawyer to make sure that any time limits for filing a suit have not expired. This is important, because if the statute of limitations passes before you initiate your claim against the defendant, then you may lose access to important potential legal remedies.
How much do you expect to recover from the lawsuit? The cost for any lawsuit likely involves costs from the court and other legal fees. If these costs exceed the amount that you are expecting to recover, it may not make financial sense to bring suit against the defendant. If you are expecting your claim to not exceed $7,500, you may be able to take your case to a Colorado small claims court. It’s also important to know if you are entitled to recover attorney fees in the event you prevail.
Can you reasonably rely on recovering from the defendant? In civil lawsuits, the court will not assist you in getting the money that you’ve been awarded from the defendant. This can make it difficult to recover in certain instances. Consider whether or not the defendant has the resources to pay a judgment.
Every case is unique, but the above questions are a good starting point for anyone considering filing a lawsuit.
