Gemma Carson is a Partner at law firm Wright Hassall and heads the commercial litigation team. She specialises in commercial litigation and has a wealth of experience dealing with all types of commercial contract disputes, arbitration proceedings and professional negligence claims. Gemma regularly writes on technical matters relating to contract disputes, able to explain often complex legal arguments in simple terms that make issues easy to understand for those facing the challenge of running their own business.
Gemma Carson, Head of Dispute Resolution at law firm Wright Hassall, says disregarding the consequences of a knee-jerk reaction could be harmful: “We see people react badly to complaints, firing off an angry email or arguing their case on the phone.
“When emotions are running high, it is easy to get involved in a heated debate about the rights and wrongs and mistakes and failures of one party or another, and things can escalate quickly.
“Real problems arise when allegations or threats to take certain steps are made, without due consideration to the terms originally agreed when the two parties entered a commercial relationship.
“To avoid making matters worse, ‘mantelpiece’ first drafts of any response before sending. Given time to cool down, most people will see their impulsive email as inappropriate.
“Check whether a service agreement and/or a contract exists between the parties and read them carefully as there may be relevant contractual terms that could help to manage the situation.
“Acting when a complaint first emerges, it can prevent it from developing into a major problem when positions become entrenched.
“Face-to-face meetings help resolve issues before they can escalate. Raise the matter directly or if it feels more serious, seek legal advice before making contact.
“Also, retain all relevant information, documents and correspondence relating to the complaint.
“Early intervention can prove effective when a dispute cannot be resolved easily as it adopts more collaborative methods of dispute resolution than traditional adjudicated court proceedings. Benefits include:
- Speed: disputes can often be resolved more quickly
- Costs: the costs can be significantly lower than traditional court proceedings
- Flexibility: offer more flexible and commercially-focused resolutions
- Relationships: often allow the parties to preserve working/commercial relationships
- Publicity: allow a confidential resolution process which can be beneficial and often obligatory
- Concurrency: can often be used in conjunction with other methods when needed.
Professional help
“Dispute resolution advice is very effective when delivered soon after the complaint is received as lawyers can offer strategic legal guidance whilst preserving the commercial position for the future.
“Remember, making a rash statement or decision to stop providing your services may cause a serious breach of contract. In simple terms, a breach of contract can entitle the party affected by it to terminate the contract and then bring legal proceedings against you for damages.
“Finally, where positions have become entrenched and legal proceedings seem the only option, work with experienced lawyers who understand commercial disputes and demonstrate a commitment to reaching an early, commercial and cost-effective resolution.”