Business Litigation Attorneys in Sacramento

Businesses have a duty to their stakeholders, employees, and customers to perform their services and provide products as advertised. This charge comes with no small amount of risk.

Most enterprises devote departments or specialists to risk analysis and management to reduce the likelihood of legal action. Companies call this analysis litigation risk. Depending on the industry, an enterprise may have an in-house legal team to run damage control should they face litigation, and the amount of damage litigation can cause is never easy to predict. If you are in need of legal help, contact an experienced Sacramento business litigation attorney for a free legal consultation.

Sweeping Effects

When businesses face a lawsuit—or they are the ones suing—long-term litigation costs become a real concern to their operating structure. The business faces the financial strain of retainers, court battles, and loss of business. Litigation can negatively impact the company in several other ways that may not be immediately apparent. Legal disputes present innumerable commercial and personal risks. Some of the most destructive include:

• Fiscal costs. The financial burdens of long-term litigation can result in slowed day-to-day operations to address legal issues. Manufacturing employees may have their daily routines interrupted by rush projects to correct design flaws, manufacturing or material defects, or faulty packaging. Companies may need to hire additional employees to augment a strained work force.
• Emotional strain. Employees embroiled in legal battles will undoubtedly worry about what an impending case may mean for the future of a company. The litigation team and corporate officers won’t be the only ones feeling the stress; staff morale will likely dip when employees know the company is entrenched in a legal dispute. The emotional toll of litigation is tangible for all parties involved. The longer legal issues last, the more of a burden they become.
• Relationships and resentment. Depending on the situation, the legal battle may drive an irreparable wedge between partners or other businesses. If someone sues a company for damages caused by faulty parts or materials from an outside supplier, it could completely destroy that relationship.
• Depending on the situation, a legal battle becoming public knowledge could result in the company’s public image being permanently stained. Litigation could potentially threaten immediate and long-term profitability. 

Damage Mitigation

The modern business world includes such a huge spectrum of variables that corporations should take the threat of litigation extremely seriously. Devoting resources to mitigating as much risk as possible is not simply a shrewd business strategy; it is essentially a company requirement, regardless of industry.

Recently in California, the Southern California Gas Company (a subsidiary of Sempra Energy) became the target of a class action lawsuit for the recent natural gas blowout in Aliso Canyon. The explosion released nearly 80,000 metric tons of methane and drove citizens out of over 5,000 homes, making it one of the biggest environmental disasters in recent American history.

So far, the company spent over $50 million fighting the lawsuit, and the corporation does not expect its insurance policies to cover potential damages. Sempra Energy’s stock price fell more than 15% since the discovery of the initial leak, and there are more than 25 pending lawsuits against the company.

The corporation will have to address its obligations as a public utility company under California state law. Violations of the California Public Utilities Code can carry up to $50,000 in penalties per violation. Sempra has also recruited leading experts to stop the leak, incurring even more costs.

Legal disputes can affect any company, and practiced legal professionals are invaluable resources that can alleviate the strains of litigation. Boyd Law in Sacramento has the experience necessary to minimize the fiscal costs of a legal battle. Our team of Sacramento business litigation attorneys are fully committed to the best possible outcome. Contact us for a free legal consultation today.