Why Avoiding Litigation May Be Your Client’s Best Strategy

Why Avoiding Litigation May Be Your Client’s Best Strategy

According to an article by Partner Matthew D. Lee and Senior Counsel Aaron E. Chibli at Foley & Lardner, litigation can be a daunting prospect for companies in terms of legal expenses due to the significant non-monetary costs it imposes. 

Lost productivity, business disruption, and diminished employee morale often accompany litigation, particularly during the discovery phase. As managing partners, the authors say it’s crucial to consider these factors when advising clients to pursue legal action.

Discovery is the most taxing part of litigation. Depending on the case’s complexity, it can last from six months to two years. It involves extensive document production, electronic discovery (ESI), and various interrogatories, admissions, and depositions forms. 

The broad scope of discovery requires companies to produce relevant documents, such as emails and voicemails, and comply with detailed interrogatories and requests for admission. This process is inherently disruptive and labor-intensive, often requiring significant involvement from a client’s personnel.

While technology and efficient legal service practices can alleviate some burdens, the core issues of discovery—its breadth, invasiveness, and resource demands—remain unavoidable. These elements contribute to considerable stress and expense and have the potential to impact the company’s overall productivity and employee satisfaction adversely.

Takeaways for Law Firms

1. Holistic Client Counsel: Before initiating litigation, counsel clients on the full spectrum of litigation costs, including the impact of discovery.
2. Alternative Dispute Resolution (ADR): Promote negotiation and ADR as viable alternatives to avoid the exhaustive discovery process.
3. Efficient Litigation Management: If litigation is unavoidable, use advanced technology and efficient practices to mitigate the impact of discovery.
4. Strategic Case Selection: Guide clients to choose their battles wisely, recognizing that sometimes the best litigation strategy is avoiding it altogether.

By adopting a client-focused approach that considers the broader implications of litigation, law firms can position themselves as strategic partners, helping clients navigate complex legal landscapes while minimizing unnecessary burdens and possibly avoiding litigation altogether.