Evaluating the Defendant Company Based on Financial Resources and Litigation Philosophy

When evaluating a defendant company in an employment case, there are two important factors an Orange County business attorney should take into consideration: the company’s litigation standpoint and its financial resources.

Close up of businessman signing a contract.

Litigation Standpoint

In properly evaluating what the best course of action is in an employment claim, the Orange County business attorney assigned to the case should research the company’s reputation for handling employment claims. If the company has a tendency not to settle, and the employee has a weak case, the attorney may decide that litigation is not the best option. On the other hand, if the evidence in the case is strong, then the attorney will prepare for trial.


Financial Resources

Another issue that an Orange County business attorney will consider in its evaluation is the company’s financial stability. If the company is not financially viable, even the strongest employment claim will be futile to litigate. This is because a financially unstable company that is facing a lawsuit will simply file for bankruptcy, leaving the plaintiff with nothing from which to gain compensation.


However, before finalizing the decision not to sue a financially unstable company, the Orange County business attorney should determine whether other avenues of finances exist, such as an Employment Practices Liability Insurance policy.


Contact Us

For more information about factors to consider in determining whether to file suit against your employer, contact Daily Aljian LLP at (949) 861-2524 to schedule a consultation with Orange County business attorney Reed Aljian or Justin Daily.