Businesses Become More Open to Litigation

Taking Affirmative Action when a business has potential claims against them is the best thing to do.

Taking Affirmative Action when a business has potential claims against them is the best thing to do.

When it comes to Business Litigation in the United States, as well as other countries, Mondaq breaks down the feelings on this topic from the business end in a recent article. Businesses have almost always viewed litigation as taxing, causing employees to spend a large amount of time responding to discovery requests and becoming liable for legal fees and other costs. On the other hand, businesses have not exactly embraced lawsuits either. With that said, it seems as though times are changing as businesses around the world are seeing the benefits of lawsuits; turning their losses into profit.

Businesses in the US are very proactive in taking the right steps to recover damages when they have potential claims against them. “Affirmative Litigation” is what this is called and is generally apparent in lawsuits in the US courts. Businesses are also considering whether claims can be asserted in other countries as well. There are many US businesses that have operations outside of US soil and are bringing in claims from a variety of different countries to recover damages especially in multinational markets including European, Asian, and Latin American markets.

In the US, one business can represent the interests of all other businesses in one case. For example, in the case of an alleged anticompetitive conduct, a single business can represent each and every consumer of a product against the manufacturers if they are assumed to have planned to set prices, or have come to an agreement to not compete with one and other.

Most businesses would have sought out whether or not another business brought a class action lawsuit instead of bringing their own case back in the day. This is called being an “absent class member” by not taking action on their own, but waiting to see if they would be eligible to file a claim for the purpose of getting part of their class action recovery. Businesses these days can no longer take a passive approach to these situations because the courts have made it harder for them to pursue class action cases. As a result of the courts, many businesses are now instead choosing to bring their own lawsuits to recover damages.