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Malicious prosecution in business: What you need to know

Business disputes happen. You and a contractor may disagree on who is responsible for a project's failure. You may have to sue a client or distributor over a broken contract.

But what about times when the lawsuit simply seems to come out of nowhere -- when the lawsuit seems designed more to upset you and disrupt your business than actually address a wrong? You may even suspect that a personal or professional grudge is motivating the lawsuit. Perhaps you suspect that a larger competitor is aiming to snuff your business out of existence to eliminate you as competition.

Whatever the situation, when someone uses a lawsuit and the court just to intimidate you, intentionally ruin your good name, harass you or damage your business, that's an abuse of process and a type of malicious prosecution.

Your losses can be severe. Your personal and professional reputations could be damaged -- especially if you are accused of something that the public generally finds reprehensible, like cheating a client. You could lose clients or customers. The expense of defending against the baseless lawsuit (or suits) can be expensive and time-consuming. Depending on what's being alleged, you may be personally humiliated and suffer a lot of emotional distress. Your business or job may suffer doubly because of the time and attention the situation demands until the case against you is ultimately dismissed or otherwise ends.

If your livelihood or business has suffered because of someone's outrageous and unfounded lawsuits, you may be able to claim compensation for your personal and professional losses. In some cases, the court may even award you punitive damages in order to drive the message home that the court is not a weapon to be used lightly.

For more information about how our firm can help you fight back against malicious prosecution, please continue exploring our site or contact us with your questions.

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