Melissa Worth, Head of Commercial Litigation at HM3 Legal, shares five practical steps every organisation should take to reduce exposure and stay one step ahead of costly legal battles.
Getting caught up in a legal dispute is no one’s idea of a fun. Litigation can sap your time, money, and patience, and can also distract your business from what matters most while putting your reputation on the line. Whether it’s a fall out over a contract, criticisms about your services, or a dispute between the business’ owners bubbling up in-house, being clued up about litigation risk is a must. Here are five essential practices every business should adopt to stay ahead of potential disputes.
1. Keeping your contracts crystal clear
So many business disputes arise because contracts are confusing or woolly. Make a habit of writing agreements in plain English, or straightforward language and make sure all the key terms are nailed down. Dispute resolution clauses, such as whether disputes should be referred to court or perhaps to an independent expert to determine, should be tailored to the nature of the relationship and the risks involved. By regularly reviewing contract templates and bespoke agreements with a specialist commercial contracts lawyer, businesses can help identify and eliminate potential pitfalls before they blow up.
2. Tackling problems early – it’ll save you time and money
If a dispute seems to be brewing, don’t bury your head in the sand. An early case assessment with a solicitor specialising in commercial disputes can be invaluable. They will help you to take a critical look at:
- where you stand legally
- what might go wrong
- the costs risk to your business and what your options are.
For instance, do you settle, battle it out, or try to talk things over? Deciding early means you’re more likely to save cash and stop things dragging on.
3. Don’t lose the evidence
When there’s a chance of a legal dispute, act fast to protect the paperwork (and the emails, and electronic files, and anything else digital). Set up steps to preserve evidence straightaway: let the right people know, stop any routine data deletion, and make sure all the relevant stuff is put to one side safely. Make it crystal clear to the team how important this is – the courts take a dim view if a party to litigation has lost or destroyed evidence. An experienced dispute resolution solicitor can provide tailored guidance on this.
4. Know your regulatory exposure
Regulatory non-compliance is a growing source of litigation risk, particularly in sectors like finance, manufacturing, and technology. Keep yourself up to speed with the latest regulations, carry out frequent checks, and make a note of what you’re doing to stay compliant. A strong compliance framework not only reduces the risk of enforcement action but also demonstrates that you have robust systems in place in the event of investigation.
5. Build a ‘litigation-ready’ culture
Being prepared shouldn’t just be left to the lawyers – it is a business wide mindset. Employees should receive formal training to spot early warning signs of disputes. Encourage teams to flag issues early and consider involving legal advisers early. Making legal awareness part of the day-to-day operations can help manage problems before they escalate out of control. Consider engaging a lawyer to provide training for key staff on how to identify and manage litigation risk.
Key takeaways: What you can do now
Effective litigation risk management is about being proactive, practical, and purposeful.
By developing a clear, structured approach to identifying and addressing potential disputes, businesses can reduce the likelihood of litigation and respond more confidently when issues arise. A well-prepared team and a forward-thinking strategy are essential to protecting both reputation and resources. A solicitor specialising in resolving commercial disputes can help prepare your team. Find out more
Expanding in to South Manchester
Expanding in to Altrincham and appointing key hires follows a period of significant growth for HM3 Legal and forms part of its long-term strategic plan to expand its legal services and geographical reach while staying true to its B Corp certification, people-first culture, and purpose-led principles. With the new team in place, HM3 Legal now offers clients a broader and deeper litigation service across the region, delivering commercially focused, solution-led advice across all stages of a dispute. HM3 Legal is growing. If you are interested in exploring opportunities, contact the team in confidence.
About HM3 Legal
HM3 Legal is a progressive law firm based in the North West of England, present in Chester, Liverpool, Manchester and Wirral. Independent industry-leading recognition includes B Corp certification, winning Law Firm of the Year 2025 at the Downtown in Business awards, and repeated Investor in Customers Gold Awards (ranked number 1 in 2024 for client service in both professional services and law firms based on companies assessed by IIC since 2006).
HM3 Legal is committed to having a positive impact while changing lives for the better. Delivering law differently via six fresh standards includes providing a ‘wow’ service every lawyer, every time, a ‘no-chase’ pledge, fixed fee options and a Service Level Guarantee. Its culture is based on RISE Values: Respect, Innovate, Shine, Engage, promoting engagement and wellbeing through benefits and positive employee initiatives.
