How To Sue A Company – Some Things to Consider

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As forensic accountants, we are always involved in litigation matters where a company is being sued.

From our viewpoint the following issues are important when suing a company:

  • Does the company still exist. You need to ensure that the company that you are suing still exists and has not being deregistered.
  • Does the company have any money to pay for any damages that you are seeking. Unfortunately, we have been involved in matters where the plaintiff won their case but the defendant company was insolvent and placed into liquidation immediately following the¬†judgement. Years wasted in an expensive litigation process.
  • Can you prove your loss. This is where we get involved in proving that a loss was suffered as a result of the actions of the defendant. It is not enough to prove a breach of contract or negligence, you have to prove that you have suffered a loss. This involves a thorough examination of your financial accounts.
  • Can you afford to sue a company. Litigation is an expensive exercise. Whilst you may be able to afford a Local Court claim, the legal costs increase significantly in District Court and Supreme Court cases.
  • You may not get your legal fees back even if you win. Many people do not realise that even if you win your case you might not be awarded costs. If you are awarded costs, it might only be a portion of the legal costs that you have incurred.
  • You might lose your case. Plaintiff’s do not often consider that they might lose their case. Losing a case may involve a verdict for the defendant and you having to pay the defendants legal costs. It might involve winning the liability arguments but losing the damages arguments and being awarded nothing.

We work with hundreds of legal firms each with their own specialisations.

If you are thinking of how to sue a company, contact us using the chat feature or call us on (02) 9411 5422 and we can recommend suitable legal firms from our comprehensive network.