Common Conflicts in Business and the Role of Litigation
Doing business is not always smooth sailing. Inevitably, there will be times when you butt heads with another party involved in your business dealings. Whether it’s a conflict with a coworker, supplier, or customer, it’s important to know how to handle these situations in a way that benefits everyone involved.
Any business, no matter how well run, can find itself in conflict. While some conflicts can be resolved internally, others may require outside help in the form of litigation.
With that in mind, let’s take a look at some of the most common conflicts in business, how to resolve them, and the role of litigation.
Conflict with a Co-worker
It’s estimated that the average person spends around 2,080 hours per year at work. That’s a lot of time spent with the same group of people, so it’s no wonder that conflict sometimes arises. Whether it’s due to different working styles or personality clashes, conflict with a coworker is one of the most common types of conflict faced by businesses.
So, what can you do to resolve this type of conflict? The first step is to try to understand the root cause of the conflict. Once you’ve identified the source of the disagreement, you can start working on a solution.
If the conflict is due to different working styles, see if there’s a way to compromise or find a middle ground that works for both parties.
If the problem is personality-based, see if there are ways to avoid or defuse tense situations before they have a chance to escalate.
Finally, don’t be afraid to seek out professional help if the conflict is proving too difficult to resolve on your own.
Conflict with a Supplier
Just like any other business relationship, the relationship between a business and its suppliers can sometimes be fraught with conflict. Whether it’s disagreements over pricing or terms of service, supplier conflicts are fairly common and can often be difficult to resolve.
One way to try to avoid supplier conflicts is by being clear and concise when communicating your needs and expectations. During negotiations, make sure those involved are on the same page regarding what you’re hoping to achieve.
It can also be helpful to build relationships with multiple suppliers so that you have some flexibility if disagreements do arise.
And finally, don’t hesitate to walk away from a deal if it’s not in your best interests; sometimes giving up short-term gains for long-term stability is the best course of action.
Conflict with a Customer
No business is immune from customer complaints, even the most well-run businesses will occasionally face dissatisfied customers. While it’s impossible to please everyone all the time, it is possible to diffuse tense situations and come up with resolutions that satisfy both parties involved.
When faced with a disgruntled customer, always start by trying to understand their point of view. Empathise with their situation and see if there’s anything you can do to help rectify the situation.
In some cases, simply apologising can go a long way toward diffusing the situation. If appropriate, offer compensation in the form of coupons or discounts on future purchases.
Lastly, make sure you take steps to prevent similar complaints from arising in the future by making whatever changes are necessary within your business.
When is Litigation Necessary?
There are many different factors to consider when deciding whether or not to litigate a business conflict. Cost is often a major factor, as litigation can be expensive. The amount of time required to litigate a case is also an important consideration. If the issue at hand is time-sensitive, litigation may not be the best option as it can take months (or even years) to reach a resolution.
Another factor to consider is the relationship between the parties involved. If there’s a chance that the conflict could damage (or even destroy) an important business relationship, mediation or arbitration may be a better option than litigation.
Of course, every situation is different and there’s no easy answer when it comes to deciding whether or not to litigate a business conflict. However, by considering all of the factors involved, you can make the best decision for your business.
What Are the Benefits of Commercial Litigation?
As mentioned above, there are many benefits that businesses can enjoy by engaging in commercial litigation. Perhaps the most significant benefit of commercial litigation is that it allows businesses to protect their legal rights and interests.
According to Randle & Taylor Barristers & Solicitors, “common types of business disputes which result in commercial litigation include building and construction disputes, contract disputes, intellectual property litigation, debt recovery, insolvency disputes, and many more.”
Secure your interests
When a business dispute arises, it is important to take action in order to ensure that your company’s rights are not being violated. By hiring a lawyer to represent your company in court, you can rest assured knowing that someone is fighting for your best interests.
Additionally, if your case is successful, you may be able to recover damages related to the dispute. In some cases, you may even be able to obtain an injunction or other relief from the court.
Another benefit of commercial litigation is that it sends a message that your company will not tolerate illegal or unethical behaviour. When you take legal action against another company, you are sending a clear signal that you will not stand for being taken advantage of or being treated unfairly. This type of strong stance can deter other companies from trying to take advantage of your business in the future.
A final outcome
Finally, commercial litigation can be an effective way to resolve business disputes in a timely and efficient manner. If you have been unable to reach a resolution through negotiation or mediation, taking your case to court may be the best way to get the outcome that you desire.
Of course, it is important to keep in mind that there are also risks associated with commercial litigation. One risk is that your case may not be successful and you could end up losing time and money unnecessarily. Additionally, going to court can be a lengthy and complicated process. As such, it is important to make sure that you understand all of the risks involved before making the decision to litigate.
Businesses will inevitably face conflicts at some point or another — it’s just part of doing business. However, by being prepared and knowing how to handle these types of situations effectively, you can minimise their impact on your business and keep things running smoothly.
While no one likes conflict, it’s an inevitable part of doing business. When conflicts occur, it’s important to weigh all of your options before deciding how to proceed.
In some cases, mediation or arbitration might be the best course of action while in others, litigation might be necessary. By taking the time to evaluate all of your options, you can make the best decision for your business and hopefully reach a resolution that satisfies all parties involved.
Author: Marshall Thurlow
Marshall Thurlow is Director and Founder of Orion Marketing Pty Ltd. He is a digital marketer with expertise in SEO, website design, content marketing and project management. With over 15 years of experience spanning government, not-for-profit and the private sector, he is well equipped to lead teams to success