Each year millions of dollars are lost by businesses that fall victim to frivolous lawsuits. While legislation exists that protects businesses, and sanctions against frivolous litigants are in place, you would do well to be proactive and set up company guidelines to avoid such a lawsuit in the first place. A Massachusetts business litigation attorney can be of assistance in this area.
Warnings, Warnings, Warnings
The structure of your company, itself, may help protect individual assets from a lawsuit against the company. Even if yours is a small business, you may wish to incorporate or establish as an LLC for this purpose.
When it comes to products your company sells, make sure you accompany them with complete warning labels. Even if something seems obvious, it is essential to spell out a warning. It may seem ludicrous, for instance, to need a warning on an insecticide that humans should not ingest the contents, but unfortunately one needs to assume in such cases that consumers are utterly ignorant.
In work areas, make sure you post all legally required warnings and employment rights signs
. Employee handbooks should also include a detailed list of warnings and rules. You might consider having your Massachusetts business litigation attorney assist in ensuring you don’t fail to omit anything of importance.
Numerous laws are in place to protect businesses from frivolous lawsuits. The Massachusetts False Claims Act of 1986 imposes civil penalties on those who falsely bring action on a company. Massachusetts law SB 1428 (2007) provides protections and
penalties against claims in qui tam actions.
If you have a concern about potential frivolous claims lawsuits against your business, consult with a Massachusetts business litigation attorney. Call David Ionson at (781) 674-2562.