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What Happens During Discovery in Business Litigation?

Every business is built on strong contracts. In fact, dozens of contracts.

These contracts can include the following:

  • Non-Disclosure Agreement (NDA)
  • Master Service Agreement (MSA)
  • Statement of Work (SOW)
  • Sales of Purchase Agreement
  • Lease Agreements
  • Employment Agreement
  • Independent Contractor Agreement

These contracts define how the business will interact with various parties. Typically, lawyers and all parties involved review a contract thoroughly. It is signed, sealed, and delivered with the hope that both parties will adhere to the contract’s terms.

Of course, that’s not always the case.

Despite all that review and scrutiny, disputes often arise in business contracts. When that happens, it’s time to retain a skilled Gulfport appeals and litigation attorney. Your attorney can review the dispute and advise you on how to pursue a remedy.

If that involves filing a civil complaint, you’ll need to go through discovery. That is where your attorney’s skills will prove to be vital.

Common Methods of Discovery in Business Litigation

As the name implies, the discovery phase is when you “discover” all relevant information related to your claim. The plaintiff and defendant are each obligated to share information and evidence related to the dispute. This allows each side to evaluate the case’s strengths and weaknesses.

Most importantly, discovery may also uncover information that encourages the parties to negotiate a settlement rather than continue litigation.

These are the common methods used by attorneys during discovery:

Interrogatories

These are written questions that the opposing party must answer. These may address business transactions, contractual obligations, financial arrangements, or decisions that contributed to the dispute. This happens outside of the courtroom but is still considered under oath.

Requests for Production

Your attorney will formally request relevant documents and electronically stored information from the other side. This evidence can include the following:

  • Contracts
  • Invoices
  • Accounting records
  • Internal communications
  • Emails
  • Text messages
  • Other business records

Depositions

A deposition is sworn testimony obtained outside the courtroom. Attorneys directly question business owners, executives, employees, and other witnesses to establish facts, clarify conflicting accounts, and assess credibility. A court reporter transcribes depositions, which are often videotaped.

Requests for Admission

A “request for admission” is a written statement that the opposing party must admit or deny. These requests help establish undisputed facts, such as whether a contract was signed, a payment was received, or a particular communication occurred. These are also referred to as stipulated facts.

Subpoenas

You may need certain documents or testimony from third parties. Sometimes protection laws shield that information. A court-ordered subpoena compels banks, vendors, former employees, and other individuals or organizations in possession of that evidence to turn it over.

Once your attorney has gathered all the evidence, they will review it thoroughly and begin building a strategy to represent you in court.

What to Expect During a Business Litigation Deposition

During the discovery phase of a business litigation claim, you might need to provide a deposition. This is a formal out-of-court interview where you answer questions under oath. Typically, a deposition will take place in a law office or online. It can last up to seven hours, and a court reporter records it.

During the deposition, your lawyer sits next to you to protect your rights. The other side’s attorney will ask you questions. Before it starts, you’ll swear an oath to tell the truth. The opposing attorney will ask background questions about your education, job, and role in the company.

After that, the lawyer will dig into the matters pertaining to your case. You’ll be asked about contracts, emails, meetings, and business events. If a question is unfair, your lawyer can object for the record, but you usually still have to answer.

Your attorney will ensure you’re fully prepared by having a practice session with the expected questions. It is important to wait until the lawyer finishes the full question before you answer.

You should also answer what the question asks. Do not give extra details or speeches. Also, don’t speculate. You’re entitled to say, “I don’t know” or “I don’t remember” if that’s true. You can also ask the lawyer to rephrase the question or ask for a pause.

Your deposition can go a long way towards establishing the veracity of your claim. It will also preview how you might testify in court.

If you are firm in your resolve, that could motivate the opposing side to settle.

How Discovery Results Influence Settlement Negotiations

Discovery is when your attorney will hopefully uncover those proverbial “smoking-gun” pieces of evidence that force the other side to measure their real chances of winning at trial.

The business litigation attorneys at Owen, Owen & Smith, PLLC won’t move forward with a claim unless we’re confident of the outcome. At any point during discovery, we can negotiate a settlement to avoid trial.

However, we’ll be fully prepared to present your case to a judge and jury. Because we must thoroughly review all the evidence, these cases can take several months. Throughout the claim process, we will keep you fully informed of any challenges and the possible outcome.

Call to schedule a consultation to discuss your issue. We can help you decide what should happen next.

 

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