lcm financeThe most known legal method of dispute resolution is litigation . However, it is not always advisable to proceed to court because it can be dangerous. In Australia adverse judgements are possible and these can be detrimental in many ways to concerned parties. As this shows, it is important that one requires to understand these risks before making a decision to go to court. Below are the major possible disadvantages of the loss of litigations in Australia.
Financial Costs
The greatest adverse consequence of a particular case is the monetary aspect. For, if you lose your case then you may even be asked to bear the legal expenses of the other side. This is referred to as “costs orders. ” In Australia, it is normally the loser who bears these costs. This can run into a considerable amount of money. On top of this, the applicant will still have to pay his or her lawyer.
Damages and Compensation
Likewise, if you lose your case, then you will also have to provide damages or compensation to the other party. This can be to a considerable extent depending on the particular case into consideration. For instance, in a case of a breach of contract, a claimant may succeed in getting an order for damages from you. This can be very costly, a drain under any circumstance;
Damage to Reputation
When participating in litigation and legal dispute one can also lose the case which in turn is very disadvantageous and also lowers your reputation. This is particularly the case with regards to business organisations. Any adverse decision made by the court against you or your company is detrimental to the brand and makes the customers shift their trust. It also has implications to your business with business partners since you’ll be seen as unreliable. Personal citizens too can suffer loss of reputation after they lose a public case. This can have long term implications.
Stress and Emotional Impact
Litigation is stressful. To deal with a case can take months or even years. Generally, you may feel a lot of stress throughout this period and develop some kind of anxiety as a result. This stress can be made worse by a loss in the case. It may result in frustration, anger and or helplessness among the targets. There is some stress involved and depression can be present from time to time.
Time and Resources
Litigation is time-consuming. The preparation for any case takes a lot of time, money and other resources. You may have to seek proof, look for a witness or even go to court to hear the proceedings. This can take you away from your work or personal life. If you lose all the time and effort spent on such a sporting event it may be regarded as time wasted. You may also have to spend a lot of time putting out the fire.
Effect on Future Cases
There are also consequences of a lost legal case which affects future cases as well. If you are in another legal process, the result from the first trial may be used against you . For example, if a client is negligent and breaching a contract case then this evidence can be used in future cases. It makes it difficult to triumph in other legal proceedings in the future.
These are the risks of losing litigations in Australia. You may incur some expenses, pay compensation and even get a bad reputation. The level of stress and the feeling of the load can be rather high. This also means that more time and effort will be spent on the case and it will feel like you have wasted your time in the event that you lose.
Author Bio – Through this article, the author has tried to make the readers aware about the consequences of losing a litigation in Australia.
