What codes of conduct can be broken during business disputes?

23/11/2022
It is important to understand how to tackle business disputes in the right manner, to balance properly duties owed in the public interest, third parties and the court

THE litigation process can be extensive and stressful, particularly if caution is not exercised and the appropriate practices are not followed. Certain unacceptable behaviours can arise either during pre-action activity, such as matters settled out of court or from conduct in legal proceedings. 

It is important to understand how to tackle business disputes in the right manner, to balance properly duties owed in the public interest, third parties and the court. Businesses should ensure that they do not overlook any of the duties owed to others and hire the right team of litigation lawyers to advise them on the proper practices during the litigation process.

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So, what are the types of conduct that can be broken during litigation, and what steps can businesses take to avoid doing so?

Making allegations without merit

This involves claims being made without sufficient investigation or where claims have been made when the so-called allegations have not existed. Acting in a reckless manner can be dangerous to the merits of the case and is usually done to pressure an opponent to settle the dispute outside of court. There have been cases in the past where solicitors have encouraged clients to continue with legal proceedings regardless of whether they think it is appropriate to do so, which is why going with a reputable litigation firm is so significant.

Engaging in litigation for the wrong reasons

During the litigation process, reporting duties must always remain fair and parties should avoid threatening other claimants or making counterclaims for reasons that lie beyond resolving the actual dispute. As an example, using litigation as a way to delay the delivery of justice or repress valid public discourse. This also includes being aggressive or excessive with litigation, which can result in disproportionate costs or distress for the parties involved. The court has made it clear that they do not appreciate the use of court time to the detriment of others and only valid arguments should be advanced. As a business, you should always be aware of the potential risks and costs of a case and the merits should be made clear to you by professional bodies.

Misleading the court

Businesses, and the lawyers they hire, should avoid misleading the court during disputes or leave themselves at serious risk of legal consequences. Misleading information can include anything from creating false alibis, to failing to disclose all relevant information, falsifying evidence and making applications to the court with the intention of delaying proceedings and increasing costs.

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