Strategic Contract Provisions to Minimize Future Litigation Costs and Liability Exposure

Counsel responsible for drafting business contracts are in the driver’s seat when it comes to mitigating the expense and liability the client will face in the event litigation arises from the contract relationship. Carefully structuring contracts to reduce litigation costs and exposure can reap savings for companies and clients in the hundreds of thousands of dollars.

Including specific pre-litigation provisions that force the parties to come to the table to attempt to settle the matter prior to filing suit often results in resolution without the expense and risk involved in litigation.

If pre-litigation resolution fails, counsel must ensure provisions are in place that allow the client to control the litigation. Being able to choose the venue and state law to be applied in potential litigation gives your client or company an upper-hand. Counsel must also be well-versed in contractual provisions which limit liability and shift litigation expenses to the other parties.

Listen as our panel of experts discusses the various contract provisions which can lessen the expense and exposure of litigation down the road such as pre-litigation provisions regarding ADR and dispute notification, forum selection clauses and choice of law provisions which give clients control over future litigation, and damage-limiting provisions such as indemnification provisions, limitations of liability, liquidated damages provisions and attorneys’ fee provisions.

1. Pre-litigation opportunities for dispute resolution
   1. Pre-suit notice provisions
   2. Pre-suit ADR provisions
2. Controlling the litigation
   1. Forum selection clauses
   2. Choice of law provisions
   3. Defense provisions
3. Lessening the costs/exposure
   1. Attorneys’ fee provisions
   2. Liquidated damages provisions
   3. Limitations of liability
   4. Indemnification provisions

The panel will review these and other key issues:

• What mandatory pre-litigation provisions should be included in contracts?
• How can counsel draft contracts to make litigation more favorable to their client?
• What provisions should be included in contracts to limit or shift the liability and expense of litigation to other parties?