- These are difficult times in the world of commercial real estate.
- During difficult times, unfortunately its much more likely that a commercial real estate owner will be drawn into litigation.
- By preparing for litigation ahead of time, the owner can increase his or her chance of success.
It’s a crazy commercial real estate world out there right now. I am not telling you anything new when I say that these are complicated times. No need to rehash the particulars. But in times like these, we usually see a rise in litigation matters. Regardless of everyone’s best intention, litigation is likely to increase in difficult economic times. And while no one wants to be involved in a lawsuit, it is important to be prepared in case one does arise. So that’s what we are going to talk about this week.
The Importance of Gathering Evidence
A lifetime ago when I was just a lad, I participated in the Boy Scouts. And from that, I still remember our motto – Be Prepared. Well that is a good idea for commercial real estate owners also. Nobody wants to get into litigation but the better prepared you are, the better your chance of success. One of the most important things a commercial real estate owner can do to prepare for impending litigation is to gather evidence. Among other items, commercial real estate owners should gather –
- Contracts: Contracts are essential pieces of evidence in any commercial real estate lawsuit. Contracts can establish the rights and obligations of the parties involved, as well as the facts of the case. This can include operating agreements, vendor agreements, etc.
- Leases: Leases are another important type of evidence in commercial real estate lawsuits. Leases can establish the terms of the relationship between the landlord and tenant, as well as the facts of the case.
- Appraisal reports: Appraisal reports can be used to establish the value of a commercial property. This can be important in lawsuits involving breach of contract, fraud, or negligence.
- Environmental reports: Environmental reports can be used to establish the environmental condition of a commercial property.
- Invoices: Invoices can be used to establish the cost of repairs, maintenance, or other services performed on a commercial property.
- Photography: Photography can be used to document the condition of a commercial property.
- Records of time spent: Records of time spent can be used to establish the damages incurred by a commercial real estate owner as a result of a lawsuit.
- Expert testimony: Expert testimony can be used to explain complex technical or legal issues to the court.
How to Gather Evidence
So how does a real estate owner go about getting all of this evidence? The key is to start early and … Be Prepared. Once you become aware of a potential lawsuit, you should begin gathering all relevant documents. You should also start keeping detailed records of all communications with the other party and any expenses you incur as a result of the dispute.
If you are unsure what type of evidence is necessary, you should consult with an experienced commercial real estate lawyer. A lawyer can help you identify the relevant evidence and develop a plan for gathering it.
Also – if you are facing potential litigation, it is very important to preserve all the evidence. This includes not deleting emails, destroying paperwork, etc. That evidence will be essential in the coming litigation. Having a preservation policy, therefore, is important.
Additional Tips for Gathering Evidence and Keeping Good Records
- Create a system for organizing and storing your records. This will make it easier to find the information you need if you are involved in a lawsuit.
- Back up your records regularly. This will protect your records in case of a fire, flood, or other disaster.
- Know what type of evidence is relevant to your case. This will help you to focus your efforts on gathering the most important evidence.
- Be honest with your lawyer about your records. Even if you have some negative evidence, it is important to be honest with your lawyer so that they can develop a strong case for you.
By following these tips, you can increase your chances of success if you are involved in commercial real estate litigation.
Conclusion
Preparing for impending litigation is an essential step for any commercial real estate owner – especially in our current environment. By gathering evidence and keeping good records, you can increase your chances of success if you are involved in a lawsuit.
If you are facing impending litigation, it is important to consult with an experienced commercial real estate lawyer. A lawyer can help you to assess your case, develop a strategy, and gather the necessary evidence.
