The Art of Getting Paid: Legal Services to Support Your Business

With a struggling economy and wars across the world, it is not difficult to be overwhelmed by the aggressive and adversarial nature of the news. Litigation feeds into that culture. You only have to look at the escalating numbers of claims at all levels of value and the backlogs in the courts to see the evidence of that. If your counterpart has deep pockets, then the court process can be an expensive tactic for delaying the inevitable. Sometimes, litigation is the right course of action, but it should be the last resort and it can be an informed choice.

One feature of a challenging economy is an underlying resistance to settling claims. It is well known in the construction sector that claims are assets, and often appear on the balance sheet. This is a consideration for sub-contractors as they can easily be caught up in the domino effect of strategies adopted by contractors higher up the supply chain. Consequently, and despite Herculean efforts on the part of industry bodies, the exposure on payment for sub-contractors remains a real and constant risk.

That’s OK for those who have deep pockets or can pass off the responsibility to others to manage a claim or move the costs to another ‘budget’. It takes time to manage a claim and it costs money to issue one. For a claim between say £5,000 and £10,000 the court fee is £455 and if your case goes to trial, there will be an additional hearing fee of £346.

Preventing disputes rather than resorting to litigation offers many advantages that can outweigh the short-term satisfaction of ‘winning’.

First, preventing disputes is a proactive and cost-effective approach, saving time and resources that would otherwise be consumed in protracted legal battles. And they are protracted. The current average time for dealing with a small claim (up to £10,000) which is defended and goes to trial is 55.6 weeks. That can be longer in London and the South East of England. However, by addressing potential issues early on, businesses can avoid disruption and financial strain associated with legal proceedings.

Litigation often leaves a lasting impact on interpersonal dynamics, causing rifts that are challenging if not impossible to mend. Emphasising preventive measures, such as clear contractual agreements and terms and negotiated dispute resolution mechanisms, allows parties to preserve working relationships, fostering a conducive environment for future collaboration. After a client has failed to pay you, you may not want to have a relationship in the future, but it is better to have a choice and having that choice shows strength.

Engaging in lengthy legal battles can tarnish the public perception of businesses and individuals. Preventive measures, on the other hand, showcase a commitment to ethical and responsible business practices, enhancing reputational integrity.

Furthermore, preventing disputes aligns with the evolving landscape of corporate social responsibility. Businesses that prioritise proactive dispute resolution demonstrate a commitment to ethical conduct and contribute to a more sustainable and socially responsible business environment. If you are already making social responsibility, including environmental responsibility, a feature of your business practice, then adding clear dispute resolution processes is a matter of consistency and showcasing them sends a message to customers and suppliers that you are walking your talk. A clear commitment to ethical business practices, fosters a healthier and more resilient business ecosystem essential to managing the risks associated with a difficult economy.

So what can you do to shift the scales of justice in your favour? Please join Unity Legal Solutions for the webinar “The Art of Getting Paid” for tips and strategies to support and enhance your brand and practice.

Register to attend for free here!