Unfortunately, commercial disputes are a frequent occurrence in the world of business. As with death and taxes, they tend to be an inevitability if you stick around for long enough. But at what point can you recognise that a dispute is likely to crop up? And what are the most beneficial steps to take in that event?
At Laytons ETL, our team are experts at recognising the signs that a commercial dispute may be on the horizon and are adept at ensuring that any issues are resolved as quickly and efficiently as possible.
How to Recognise the Warning Signs
Commercial disputes rarely arise without warning; they can come from almost anywhere – partners, investors, shareholders, clients, suppliers, contractors and competitors. Below are some of the more common signs that a dispute could be about to occur:
Significant changes in communication, such as a shift in tone or avoiding communication.
Financial and payment irregularities, including shifting from being punctual with payments to being consistently late, or requesting new terms.
Operational and contractual red flags, such as requests to change the way things are done or documented, disagreements around contractual terms, and rights, and refusing to put information in writing.
Escalation tactics are usually the last sign that a dispute is going to happen, often apparent through means such as aggressive correspondence or contract terminations.
If you suspect a dispute may be on the cards, it’s important to take early advice – not doing so can cost far more in the long run.
Are Commercial Disputes Time Sensitive?
Ignoring a dispute or being inactive will rarely, if ever, benefit you. It is best to get legal advice as soon as anything like this comes up as delaying your response will only increase penalties and costs.
Clear and respectful communication is one of the most effective ways to resolve disputes in their early stages. Open dialogue allows parties to express concerns, clarify misunderstandings, and work towards mutually beneficial outcomes. It is important to engage and inform your legal team of any communication you send, as each case will have its own specific legal advice.
The longer you wait to act, the higher claims for damages, interest and legal fees are likely to be. If you act quickly, you could avoid the courts altogether and put matters back on track. We often assist clients with this ‘behind the scenes’ but also in more open ways such as through mediation. As well as this, acting quickly will usually save management time and mean that your reputation suffers less – dragging a dispute out is an easy way to attract negative PR.
Some cases require urgent action – to stop a counterparty from taking steps that could cause loss or damage to your business or to prevent a fraudster from syphoning assets away. This is our bread and butter.
Manageable VS Critical Disputes
As mentioned, disputes happen all the time in business, therefore, it figures that some will be more serious than others. At times it may be worth pressing the panic button and manning your battle stations, whereas, sometimes, an open dialogue or a sincere apology can do the trick.
The importance is in determining the strategy for each dispute that arises – this can be tricky to figure out for those whose primary role is running a business. At Laytons ETL, our team are well-versed in managing commercial disputes, with experience ranging from SMEs to international groups across a wide range of sectors. Before guessing yourself, speak to one of our team: legal decisions can be complex, and it is rare that two are exactly the same, we can set you on the right path from the outset and simplify your business life.
Related Expertise
Disclaimer: This publication is provided by Laytons LLP for informational purposes only. The information contained in this publication should not be construed as legal advice. Any questions or further information regarding the matters discussed in this publication can be directed to your regular contact at Laytons LLP or Laytons’ Disputes team.
