Texas is known for its huge energy industry. If you operate a business in this sector, you likely understand that lawsuits happen.
Oil and gas operations are risky, at best. Issues like volatile markets, changing prices and uncertain success when drilling means disputes are bound to arise. While it’s impossible to shield your business from all lawsuits and litigation, you can take steps to ensure your business is set up for the best possible outcome in these situations.
Give your insurance carrier notice of potential litigation
If insurance coverage comes into play, let your carrier know when you first become aware of a possible claim. Some carriers will want to be involved with the entire process. Additionally, putting the carrier on notice can help reduce the possibility of them arguing that you did not provide timely notice or denying coverage for your defense.
Put communications on lockdown
If you think there is a possibility of a lawsuit, you need to take control of communications. Be sure your employees know that anything in writing may be used during discovery and could impact your business’s position. Be sure to have the notice you send to employees about this reviewed by a professional who can help with its wording and legal aspect.
Take steps to preserve any relevant evidence
You don’t want to be put at a disadvantage in your case, so make sure that you take every reasonable step you can to preserve relevant documents, communications and other evidence — good or bad. Otherwise, you could lose your case through accusations of purposeful spoliation.
Protecting yourself and your business during litigation
Litigation is a part of the landscape in the energy sector. While this is true, it doesn’t mean you can’t take steps to reduce the impact on your business. Knowing your legal options is the best way to do this.