Business owners rely on attorneys to provide sound legal advice and representation. When attorneys fail to meet their obligations, it can result in major financial losses, such as significant revenue decline or business closure due to costly litigation or a damaged business reputation.
Legal malpractice claims can be complex and require careful documentation. If you are a business owner, what evidence do you need to confirm that legal malpractice caused your business to suffer losses?
The importance of proving causation
Proving causation is vital in a legal malpractice claim. You must show that the negligent actions of the attorney directly caused your losses. Thus, you must gather key evidence, such as:
- Financial records: Balance sheets and income statements can show the decline in business performance after the alleged malpractice took place. These records can also set a baseline for the financial health of your business before the malpractice.
- Expert testimony: An accountant or financial analyst can provide an objective assessment of your losses. This can be useful in cases where the losses are difficult to quantify, such as in intellectual property disputes.
- Communication and contract with the attorney: Your exchanges of emails, text messages and letters with the attorney, and the contract or engagement letter with them, can help establish the scope of their representation. These can also prove any deviations from their standard of care.
- Internal business records: Meeting minutes and emails can provide context for your decisions and how the attorney played a role in these decisions.
Further, proving the extent of your losses can be a challenging task. This requires showing that the outcome would have been different if the attorney had acted properly.
Seeking compensation for your losses
As a business owner who has suffered losses due to legal malpractice, it is essential to take action to protect your interests. However, managing the intricacies of the law can be overwhelming and daunting. With legal counsel, you may better safeguard your rights and make informed decisions as you seek compensation for your losses and other damages.