John B. Quinn, the founder of Quinn Emanuel Urquhart & Sullivan LLP, the world’s largest law firm focused on business litigation, shares insights on common mistakes that litigants make before or during legal disputes. One major area of concern is communication, as written exchanges can be used against companies in litigation. Document destruction, altering records, or deleting evidence can have serious consequences and worsen a company’s legal position. Adverse actions against potential witnesses, such as layoffs or firings, should be avoided to prevent witness unavailability or hostility during trial.
Maintaining attorney-client privilege is crucial, as it protects confidential communications between lawyers and clients. Companies risk waiving this privilege if in-house counsel also serve a business role, or if protected communications are disclosed to third parties. It is essential to label privileged communications and limit access to necessary individuals. Lying to lawyers or withholding information can have negative consequences on legal strategies and outcomes. Emphasizing cost reduction over overall legal costs may not necessarily result in minimizing expenses.
Insurance coverage is vital in legal proceedings, and contacting insurers promptly after receiving legal notices can prevent unnecessary financial burdens on the company. Keeping insurers informed about litigation developments and obtaining consent for counsel retention are important steps to ensure coverage. Companies must also adhere to corporate governance practices, such as documenting actions and following corporate formalities, to minimize risks of lawsuits against parent companies for subsidiary actions.
Choice of law and dispute resolution provisions are critical in determining the outcome of litigation. Understanding these provisions before signing any agreements can prevent potential issues in the future. Companies should carefully consider whether litigation is the best solution to their problems, as lawsuits can be challenging to end once initiated. Litigating out of principle may not always be the most practical approach, and prioritizing success in the marketplace over in court may yield better outcomes.
In conclusion, parties involved in legal disputes should be mindful of avoiding common mistakes that can undermine their legal positions. Seeking legal advice and consulting with attorneys on specific matters is essential to navigate the complexities of litigation successfully. The insights provided by John B. Quinn serve as valuable guidance for companies and individuals embroiled in legal proceedings, highlighting the importance of strategic decision-making and adherence to legal protocols to achieve favorable outcomes.
