When NOT TO LITIGATE as an Amazon Seller – Important Considerations about Litigation

All right people, other lawyers may not like this, but in this video, I’m going to tell you when you should NOT sue anybody. Okay?

Number one, do not start a lawsuit unless at the end of the day you can actually collect money.

The goal of most litigation is to recover damages, someone made a baseless counterfeit complaint against you, you lost sales for a month, you’re down a $100,000 so you want to sue them and you’re right, but if you can’t collect anything against them, who cares if you win the case?

Number two, don’t sue unless the amount you’re seeking to recover is at least 3 to 5 times the cost of the lawyer.

When you’re paying legal expenses, it’s like any other business investment, you need to know, or you need to at least have a big upside that it’s a worthwhile investment of your money and your time.

So as a rule of thumb in my practice, if you call me and say, “CJ, I want to sue this guy or this brand,” I’m first going to do the math. I’m going to say, “Okay, the litigation’s going to cost somewhere between $20,000 and $100,000, I want to make sure that we’re going to recover $300,000 and we can collect it down the road.”

Because again, if you can’t collect on a win, who cares that you won the case? Litigation is not about paying me or other lawyers.

Litigation is about you recovering your damages, and you should never pursue litigation unless you can get to your ultimate goal, which is almost always collecting money.

Want to learn more tips on when & when not to litigate? Submit your case online.