Litigation-I Win, You Lose vs. Mediation-Win/Win

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  Litigation is a zero-sum game.  It destroys relationships and fosters enmity between the parties.  Parties rarely walk away happy.  Even if they win, the expense of litigation is enormous, and collecting on judgments is difficult. Disputes ultimately resolve, but the focus on winning at any cost can lead to prolonged legal battles.  Living with a lawsuit causes ongoing stress, which can distract you from your business and even have an effect on your health. In a courtroom, the final decision lies with a judge or jury who may not fully grasp the complexities of the case. Parties relinquish control over the outcome, potentially leaving them dissatisfied with the final judgment. Mediation has the opposite effect.   Rather than polarizing people, it enables the parties to attack the issues and not each other.     The process promotes open communication, collaboration and problem-solving, which enables parties to actively participate in crafting mutually beneficial solutions.   It res

Contract Clauses Every General Contractor Should Have-Attorneys' Fees

Many clients are surprised when they find out that they cannot collect their attorney's fees if they have to bring an action to collect payment from a client. In fact, they may end up spending more to collect than the actual dollars owed. Obviously, this is not good business. If your clients owe you money, and they have to pay to try to collect, they should get their legal fees back.

There are various ways to write an attorney's fees clause into a contract. You can state that the prevailing party will collect in the event of a dispute, but that subjects the construction company to potential liability for the other party's fees. Why do that?

Here is an actual clause that I put in one of my client's contracts:

If ABC is required to proceed with any action against the Owner for the breach of any provision of this Agreement, then the Owner agrees to pay all of ABC's reasonable attorneys fees, together with interest and costs.

Put a clause like this in your contract NOW!

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