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www.images-magazine.com APRIL 2019 images 57 KB BUSINESS DEVELOPMENT negotiations. Ironing out the remaining outstanding matters in 24 hours was not going to be possible, and I therefore agreed to cancel negotiations. Almost a year later I received a telephone call from a whistleblower. He had seen a falsified back-dated letter being prepared to claim that I had assured printers in Screen System‘s region of the country that we had concluded a deal whereby they would be able to buy our product from Screen System. The purpose of the letter was to support a claim that terminating negotiations with Screen System had caused them loss of potential business. The whistleblower told us the letter had been typed on a screen printing company’s letterhead from a draft in the handwriting of Screen System’s principal. The anticipated letter from Screen System‘s lawyer arrived by FedEx within days. They were claiming Can$75,000 (£43,000) in damages for breach of contract. The falsified letter was offered as proof. My lawyer arranged for one of his partners, a trial lawyer, to meet with us. I explained the circumstances, including the fact that the whistleblower was willing to swear an affidavit concerning the falsified letter. The lawyers were almost salivating in anticipation of confronting the plaintiff in discovery and hoisting him by his own petard. That strategy quickly derailed however when I asked who would be paying for the spectacle. As tempting as such a hoisting was, I was reluctant to fund it, and we settled instead on a much less costly yet very effective solution. My lawyer replied to Screen System‘s lawyer saying that we had reason to believe the letter upon which they were basing their claim was questionable. He added that if they didn’t withdraw their claim in writing within a specified period, we would allege fraud and file a civil suit for damages. Within very short order my lawyer received a letter stating the claim had been withdrawn. I still ascribe the swift resolution of the Screen System matter to the value of having access to the resources of a partner in a large, national law firm with an impressive letterhead. The lesson for any small business owner caught up in a similar situation is simply this: don’t launch spurious lawsuits, fight back vigorously if you’re the victim of a spurious lawsuit, prepare properly and work with a good lawyer in a good firm. Outgunned While I advocate that small business owners should fight their legal battles with vigour, there may be times when you’re simply outgunned and without the resources to sustain a lengthy battle against an opponent capable of dragging out the legal process almost ad infinitum. One of my customers, a textile screen printing shop, was the victim of a scam involving orders paid by credit card over the phone. It turned out the card numbers had been stolen from customers at a gas station. The credit card company billed the screen shop for the Can$27,000 (£15,000) lost to the scammer. The screen shop owner saw his lawyer about suing the credit card company for restitution and was told that although he had a strong case, he was unlikely to be able to stay the course long enough to win against the big opponent, given its superior resources. To illustrate the point, the lawyer said, “If this represents the extent of your resources” – he held his thumb and index finger about two inches apart – “then this” – he stretched his arms out as if preparing to fly – “represents the credit card company’s resources.” Some lawyers may have allowed the business owner to proceed with the suit with a view to reaping a fee. A good lawyer isn’t just one who knows how to battle effectively on behalf of your small business, but also one who knows when not to battle at all. Money pit alert Even if you’re working with a reputable lawyer whom you’ve known for a long time and in whom you have the utmost faith, you shouldn’t forget you are the primary guardian of your small business’s budget. A lawsuit is like a home renovation. It can be well considered, carefully planned and meticulously budgeted, and then it can drag on much longer than anticipated and hit snags you would never have expected. It can become a bottomless money pit. Characters Who Can Make Or Break Your Small Business is a new book from accountant and print industry veteran Michael Best that identifies the issues faced by small business owners and offers advice backed up by real life examples. It is available from www. smallbusinesscharacters.com and Amazon . A lawsuit is like a home renovation... it can become a bottomless money pit Unfortunately, as far as I know, there is no blanket formula for anticipating the costs and benefits of a lawsuit – it comes down to both the lawyer’s and the client’s good judgement. This is just another reason to have a concerned lawyer who views you more as a long-term client than a one-off fee opportunity. You get what you pay for I can’t resist reiterating my experience-based advice: be very careful when selecting a lawyer for your small business. In the cases where my opponents received inadequate legal advice, they were relying on small local practices. I’m not suggesting there aren’t any good sole-practitioner generalists, but frankly, I would have reservations about one with an office above Amy’s Massage Parlour in an industrial-area strip mall desperately in need of a coat of paint. If you ever need legal assistance, you’ll be pleased when your small business lawyer is a partner in a national firm able to access a smorgasbord of talent. It will almost certainly cost more than engaging a small-firm generalist, but the odds are your business will stand a much better chance of success in its legal trials and tribulations.