Tag: costs of litigation

business litigation, Confidential Information and Trade Secrets

Cyber Security for Your Business

Mark Schroeder

Experts predict that the next wave of litigation against businesses may involve cybersecurity and the failure of businesses to implement pragmatic protections to avoid or minimize the theft or disclosure of private personal information (PPI) or confidential customer information. While insurance may be available to cover some of these losses, the risks to your business and its reputation could be substantial.

Nothing provides immunity from liability, but these steps could decrease liability, exposure or loss:

  • Assess the data you collect, where it is stored and how it is used.
  • Make educated decisions about what data to collect and/or retain.
  • Understand how you use and share the data you collect and retain.
  • Evaluate the locations where sensitive data is stored and its security.
  • Restrict access to sensitive data to trusted employees and agents who need to know.
  • Require secure authentication passwords for access with frequent changes.
  • Routinely monitor your data storage and collection network for breaches or hacks.
  • Know your vendors and service providers’ data protection policies and procedures.
  • Have written privacy and data destruction policies tailored to your business.
  • Communicate your policies to all appropriate people.
  • Train employees to follow privacy policies and procedures.
  • Provide where to direct complaints and have and have a plan to address with them.
  • Ensure that security vendors are qualified to provide appropriate services.
  • Regularly review your efforts and methods to protect information.
  • Keep apprised of the legal requirements applicable to your business and its data.
  • Stay current with government, industry and association standards and best practices.
  • Know what your current insurance policies require and cover.
  • Develop an incident response plan to address any breach.

If you have any questions or if I can assist you in this regard, please contact me.

This Blog is designed to provide our friends and clients with information regarding the various subject matters covered. It is not designed to take place of legal, accounting or other professional advice.  If expert assistance is required, the services of a competent professional should be sought. This memorandum may constitute advertising under the rules regulating Illinois attorneys.
business litigation

Evaluating the Costs of Litigation to a Business

Mark Schroeder

While Americans and their businesses are the most litigious in the world, lawsuits are often filed and defended without consideration of the costs to the litigants. Plaintiffs should consider these costs before suing, and defendants before responding.

Even if your attorney’s fees are on a contingent or some modified cost basis, as opposed to hourly, the cost of litigation for plaintiffs can still be substantial. Owners and employees are required to assist with the litigation, taking time away from the business. Parties may have to open their books and activities to scrutiny by defendants, proprietary and confidential information is exposed, and embarrassing information can become public. Counterclaims are also often brought, resulting in additional attorney’s fees and risks. Pending litigation also effects credit decisions and employee and third party relationships.

Even with insurance coverage, the cost of litigation can be substantial to a defendant. Litigation not only can cause uninsured or non-deductible expenses, but requires substantial involvement of employees at the expense of the operation of the business. Pending litigation can effect financing, employment, customer and vendor relations, business value and other critical business functions and decisions. Buyers and bankers often do not care about why a lawsuit is pending or your promises that it will not damage the business.

Before initiating or responding to a lawsuit, the parties and their counsel should consider alternative methods to resolve the situation, including mediation, arbitration or negotiating a settlement, reducing costs and avoiding the publicity, risk and delay of litigation. Involve appropriate third parties, insurance carriers and others to help reach a settlement and think outside the box. Including a dispute resolution mechanism in contracts can also minimize the risks and costs of a lawsuit.

If your business is confronted with the decision to sue or defend a suit, the attorneys at Brooks, Tarulis & Tibble can advise you on what to expect and counsel you on options to minimize the risks, costs, uncertainty, publicity and delay of litigation. If you have any questions or we can assist you in this regard, please contact me.

Mark W. Schroeder
Brooks, Tarulis & Tibble, LLC
(630) 355-2101
mschroeder@napervillelaw.com
http://www.napervillelaw.com