Think carefully before going to court
I just heard from a client who was upset about a bill.
His company had performed work for another company, which had not paid. We (on his behalf) threatened to sue the nonpaying company. They did not respond. We did sue the nonpaying company for payment--plus attorney fees, under an Oregon statute.
We conducted discovery and took depositions. They hired an attorney of their own, lodged counterclaims, and explored the full gamut of their legal rights to defend themselves.
Eventually, the case settled with each party walking away with nothing--meaning no attorney fees, either. Now the client cannot remember how we got into litigation that ended up costing him far more money than he was seeking to start with.
Moral of the story for attorneys: Always warn clients exactly how badly initiating legal action can turn out. Moral of the story for clients: Once you start the legal machinery, it can be expensive to turn off.
His company had performed work for another company, which had not paid. We (on his behalf) threatened to sue the nonpaying company. They did not respond. We did sue the nonpaying company for payment--plus attorney fees, under an Oregon statute.
We conducted discovery and took depositions. They hired an attorney of their own, lodged counterclaims, and explored the full gamut of their legal rights to defend themselves.
Eventually, the case settled with each party walking away with nothing--meaning no attorney fees, either. Now the client cannot remember how we got into litigation that ended up costing him far more money than he was seeking to start with.
Moral of the story for attorneys: Always warn clients exactly how badly initiating legal action can turn out. Moral of the story for clients: Once you start the legal machinery, it can be expensive to turn off.
posted by Derek the Great at 3:18 PM
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