In the context of contract disputes, our philosophy is that litigation should always be our client’s last resort.  Filing suit will almost always destroy any future business relationship between you and the other party.  Litigation can be expensive, a businessperson’s initial reaction will usually be to wait to talk to an attorney until all other options have been exhausted.  However, contrary to intuition, you are almost always better served by contacting an attorney as soon as you have suspect an oncoming crisis.  When addressing a contract dispute, legal advice may be your best investment in risk mitigation.  As the old proverb states, an ounce of prevention is worth a pound of cure.  Similarly, a brief legal consultation today may avoid a costly lawsuit tomorrow.  

Often, you first realize there’s an issue with a business partner due to a lack of communication:  your contact will not return your calls, respond to your emails, or answer your questions.  This usually indicates that the non-responsive party is experiencing some difficulty, such as employee turnover, poor cash flow, or loss of a supplier.  In many instances, a letter from an attorney will prompt the other party to address your issue.  Additionally, an attorney review may identify deficiencies in your agreement with the other party that you need to address.  For example, your agreement may be so vague that it’s unenforceable; your oral agreement may be required by law to be reduced to writing; or you may need additional security from your debtor to protect your interest.  An experienced attorney will recognize these problems and suggest various ways to fix them, beyond simply filing suit.  For instance, if you want to continue a business relationship with a customer but need reassurance that the other party will pay its bill when circumstances improve, you may ask for a promissory note as evidence of a debt or a personal guaranty of the business owner to secure your payment.  
However, once it becomes apparent that the other party has no intention of keeping his or her end of the bargain, you need unflinching attorneys to avidly protect your interests.  There’s an old saying in the legal profession:  “He who sits on his rights will certainly lose them.”  Every day that you wait to pursue your claim is one day closer to your claim being barred for failure to pursue it within the applicable limitations period.  If the other party is in financial distress, each day that passes is an opportunity for other creditors to claim priority over you, or for the debtor to siphon off corporate assets for personal use.  Failure to pursue certain claims once you discover them, or even your failure to investigate claims when there’s a reasonable expectation to do so, may preclude you from raising those claims in a lawsuit.  If you delay in asserting your contractual rights, you do so at your own peril.

At Gibson & Keith, our attorneys have over sixty years’ combined experience representing individuals, local businesses, non-profit entities, counties and municipalities in contract disputes and commercial litigation involving:

•    Unpaid invoices/accounts receivable
•    Failure of performance
•    Negotiable instruments
•    UCC sales contracts
•    Collections and enforcement of security interests
•    Mechanics and materialmans’ liens
•    Employment disputes/wrongful termination
•    The Arkansas Teacher Fair Dismissal Act
•    Landlord-tenant disputes (commercial and residential)
•    Farm leases and timber harvesting agreements
•    Competitive bidding and solicitations for government contracts
•    Energy savings performance contracts (ESPCs)
•    Tortious interference with contractual relations/business expectancy
•    Breach of fiduciary duty
•    Fraud and misrepresentation
•    Deceptive trade practices

At Gibson & Keith, we strive to first understand your business and expectations.  Then, after identifying and discussing all available options, we recommend the best course of action to safeguard your interests.  Whether we are assessing risks at the outset of a deal, negotiating a dispute mid-performance, or pursuing your claim in court, we advocate for our clients with unrivaled tenacity and unwavering resolve. Don’t settle for unexceptional – choose bold representation.  Call Gibson & Keith today and consult with one of our attorneys regarding your situation.