Business litigation in Newport Beach CA is a reality for many area businesses. Many businesses prefer to avoid this aspect of the business due to the potential costs associated with business litigation in Newport Beach CA. However, this is not always possible. In addition to the legal expenses, other costs that a business pays for litigation include:

Effect on Business Reputation

When a business is embroiled in a nasty lawsuit, this may negatively impact the business’ reputation. Shareholders may worry about a lawsuit crippling a business financially or resulting in an outcome that is unfavorable for the business. Due to the publicity of court cases, things may be revealed in court that the company prefers not to disclose or be made public. When weighing whether or not to participate in litigation, the business must consider the consequences of not taking an aggressive stance with litigation and what this can entail for the business.

Employee Morale

Another concern is how the lawsuit will affect the people who work for the business. A lawsuit can sometimes affect employee morale and how those working for the company perceive the business. A decline in morale can often mean a decline in productivity and an increase in employee turnover.


In many cases, the issue involved concerns an important right for the business. This right may be due to a contract and not litigating the case can mean waiving this right. It can also be because of a confidentiality agreement regarding proprietary information or an intellectual right. Sometimes the cost of not litigating exposes the business to greater loss than litigating the case. A litigation lawyer can discuss the potential costs involved in litigation and make a recommendation about what is best for the business.