In the competitive business environment of the Pacific Northwest, disputes are almost inevitable. Whether involving partners, employees, customers, or competitors, litigation often becomes a defining—and expensive—moment for a company. While no business can eliminate legal risk entirely, many of the most costly litigation outcomes stem from avoidable mistakes made long before a lawsuit is filed.
Below are five common litigation errors businesses make—and how to prevent them.
1. Ignoring Demand Letters and Pre-Suit Claims
If someone has a legal bone to pick with you, they may hire an attorney and send you a demand letter. Many business owners hope that a dispute will simply disappear if it is not acknowledged. In reality, silence often accelerates the path to litigation as you have left the angry party with no other option.
Why It Costs Money
- Failure to respond may be used as evidence of bad faith.
- It can eliminate opportunities for early resolution.
- Insurance carriers may deny coverage if notified too late.
Washington’s rules of civil procedure encourage early settlement discussions and require preservation of evidence once a dispute is reasonably anticipated. A failure to respond can harm both your legal posture and your credibility in court.
2. Not Preserving Evidence When a Dispute Arises
Once litigation is foreseeable, businesses have a legal duty to preserve records—including email, texts, security footage, payroll data, and internal communications.
Why It Costs Money
- Courts can impose sanctions for spoliation (destruction of evidence).
- Judges may allow adverse inference instructions, telling juries they can assume missing evidence would have hurt your case.
- Restoration and forensic retrieval costs can quickly escalate.
A well-written litigation hold notice, issued promptly to relevant personnel, is one of the most effective protections a company can employ in the early stages of a dispute.
3. Relying on “Form” Contracts That Are Not Washington-Specific
Online or out-of-state contract templates rarely account for Washington’s unique laws governing non-competes, wage rules, consumer protection, and attorney fee provisions.
Why It Costs Money
- Clauses may be unenforceable or interpreted against you.
- Ambiguity almost always fuels litigation, rather than avoiding it.
- Poor forum-selection or arbitration clauses can force disputes into unfavorable venues.
In Washington, certain clauses—such as restrictive covenants—are tightly regulated and require specific drafting to avoid costly disputes.
4. Underestimating Employee Litigation Exposure
Washington is one of the most employee-protective jurisdictions in the country. Wage rules, overtime, protected leave, and classification standards are aggressively enforced, and claims often become class actions.
Why It Costs Money
- The Washington Consumer Protection Act and wage statutes allow attorney fee recovery.
- Penalties and interest on unpaid or miscalculated wages add up quickly.
- Retaliation claims can be triggered even when employers believe they acted fairly.
Even a single misclassification or overtime error can escalate into a claim affecting dozens of employees.
5. Waiting Too Long to Involve Litigation Counsel
Businesses often attempt to resolve disputes internally or through informal negotiations before contacting counsel. By that time, key strategic advantages may already be lost.
Why It Costs Money
- Missed early settlement windows
- Poorly documented communications
- Admission-risk language in emails or internal memos
- Failure to secure insurance coverage notices on time
Early legal guidance typically reduces, rather than increases, total litigation spending. Attorneys can help assess risks, document positions, preserve evidence, and negotiate from strength before the situation escalates.
Proactive Risk Management Is Cheaper Than Litigation
Most expensive litigation outcomes are not the result of a single event, but a series of preventable decisions:
- Contracts that were not reviewed
- Emails that were not preserved
- Deadlines that were missed
- Adversaries who were ignored
- Employees who were not trained
A strategic legal partner can help identify vulnerabilities, provide early assessments, and guide businesses through conflict with clarity.
We Can Help Protect Your Business
Beresford Booth represents Washington companies in commercial, employment, contract, shareholder, and regulatory litigation. Whether you have just received a demand letter or are preparing to file suit, we provide strategic advocacy designed to protect your operations, reputation, and bottom line.
If your business is facing a dispute, we can help you move forward.
Contact us to schedule a consultation at info@beresfordlaw.com or by phone at (425) 776-4100.