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ARTICLE · 23 NOVEMBER 2018

Three Questions Every Company Should Ask Before Commencing Litigation

Bentham IMF Capital Limited
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When a company is considering whether to commence litigation, it will typically assess both the "soft" and "hard" factors at play.

CanadaLitigation, Mediation & Arbitration
Bentham IMF Capital Limited
Bentham IMF Capital Limited

When a company is considering whether to commence litigation, it will typically assess both the "soft" and "hard" factors at play. "Soft" factors include the management time, business relationship issues and reputational considerations. The typical "hard" factors are the potential return if the case is successful, the likelihood of winning, and the cost of advancing the matter. In addition, a company should always ask:

  1. What other opportunities will we forfeit if we direct our capital to this litigation? Capital directed to litigation cannot be used for other business purposes, such as research and development, organic growth, or acquisitions. What opportunities will be delayed or abandoned if the company commits its cash to litigation?

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