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Common Reasons Why Companies Are Sued

— October 20, 2022

A breach of contract can be prevented through good communication and other precautions, but this doesn’t always happen.

Many times, companies end up getting sued. This could happen for various reasons. A business can be sued not only by people who purchase products from them but also by its own employees. While going to court when you have problems with a certain company seems unusual, it’s something that may happen in some areas. 

The response to the lawsuit will depend on the type of claim the person made against the company. If you own a business, you might want to make sure you avoid situations that could possibly put you at risk of being sued. So, here are some of the most common reasons why people decide to file claims against companies:

  1. Harassment and Discrimination

Unfortunately, discrimination is not something that has been eliminated from workplaces. The owners of many companies do nothing to prevent it from happening. Others may also encourage it in some cases. Still, the law prohibits any type of harassment and discrimination based on religion, race, gender, age, disability, pregnancy, military/veteran status, and medical condition.

As such, any employee has the right to sue a company when they feel discriminated against or if their complaints against the incidents do not bring any results or even lead to repercussions for them. Also, employers do not have the right to retaliate against an employee who decides to sue for discrimination. 

Because discrimination is still very common, it is one of the main reasons why companies end up being sued.

  1. Accidents and Injuries

It’s not unusual for someone to get injured in the workplace, especially if the work involves using potentially dangerous tools or machinery. Sadly, many injuries occur when the employer is neglectful. For instance, they may be aware of possible dangers in the workplace yet do nothing to eliminate them or at least warn their workers about them. 

Some of the most common events of this type are slip and fall accidents. Many times, business owners will do their best to avoid scenarios of the sort, but there are also situations when negligence is present. 

If the plaintiff has reasons to believe the company owner was negligent and can show evidence in court, then suing seems the most reasonable option.

  1. Product Liability Lawsuits

Companies that provide certain products or services to their customers have a responsibility: to make sure that what they sell is safe and will not result in anyone getting injured or, even worse, dying.

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Most of the time, a serious business will go through different testing stages to ensure an item is safe before it ever makes it to a big shop’s shelves. Still, there are times when testing cannot predict a particular product failure. Other times, the companies may not go through rigorous tests, and the product is sold with potential defects. 

Customers can sue a business when the products or services offered have resulted in injuries and might get compensation for their suffering and loss.

  1. Breach of Contract

Breach of contract cases is very common. The breach of contract may occur for various reasons, but when it affects the other party, the company can be sued. 

Now, a breach of contract can be prevented through good communication and other precautions, but this doesn’t always happen. When an agreement isn’t respected by one of the parties, the other has every right to file a claim. 

  1. Intellectual Property 

If you’ve been into business for a while, you know how important copyrights and trademarks are. If a company steals something from your business and presents it as its own, you can sue them. Another business can do the same against you if you steal an idea or anything that they have copyrighted or trademarked. 

For instance, if you have a special recipe that defines your company, but a different firm comes and steals the exact recipe, you can sue them. 

Therefore, infringing someone’s rights can lead to a lawsuit. Intellectual property infringement lawsuits usually involve trademarks, copyrights, and patents. 

Final Thoughts

Texas is a state that has more than 3 million small businesses, and all of them can be at risk of being sued if they do something wrong. If you own a business yourself and want to make sure you can defend yourself in case of a lawsuit, you have the chance to hire an expert business attorney in Houston. Your rights will be protected, and you’ll have a higher chance of winning the case. 

But before it gets to this, you must do everything you can to avoid making the mistakes listed in this post. This way, the risk of getting sued will decrease significantly.

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