Business Wise
Complaints.Remain calm or make things worse
Occasional complaints about goods or services are inevitable. You might see these as unjustified attacks on your good name or a tactic to avoid payment. But if you’re tempted to have it out with the complainant, you could do more harm than good, according to Gemma Carson, (pictured) Head of Wright Hassall Solicitor’s dispute resolution team.
W
hen it comes to complaints, people oſten fire off an angry email or argue their case on the phone, but that could spell disaster and prove expensive for the business. It is all too easy to get embroiled in a heated dispute. Things can
quickly escalate and problems arise when allegations or threats to take certain steps are made, without consideration given to the terms originally agreed when the commercial relationship was entered into. But plenty can be done to reduce the risk of worsening the situation.
Initially, consider the content of the complaint fully; make no commitments and make no threats. If you’re feeling outraged, it’s best to ‘mantelpiece’ your response. Write
out everything you want to say in an email, but then put it on your virtual mantelpiece to consider, without sending. Once you have calmed down, return to the draft and decide whether
it makes sense to send your angry response. Emails written in the heat of the moment have a nasty habit of biting back when a complaint turns into a dispute.
Check whether a service agreement and/or a contract exists between the parties. Read any agreements carefully and check what they actually say. With an agreement in place, you may be able to respond to the complaint by pointing out relevant contractual terms.
Do something It’s important to be proactive and not ignore a complaint. If you deal with it when it first happens, it could save it developing into a major problem. Face to face meetings can help air issues. Ignoring a glitch or complaint and hoping it will go away is not the answer. It’s best to either raise the matter directly or seek legal advice before you do. If it feels serious, keep all the information relating to the complaint.
Include documents, correspondence, any products or specimen products from the same batch, carry out and document any inspections of equipment or machinery.
Benefits of early intervention Where a dispute cannot be resolved easily, early intervention can prove very effective, using more collaborative methods of dispute resolution. These include mediation, conciliation and negotiation, rather than traditional adjudicated court proceedings or arbitration. Early intervention options can offer significant benefits, including: ●Speed: A dispute can often be resolved more quickly. ●Costs: Can significantly reduce the costs of dealing with a dispute, in comparison to traditional court proceedings.
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●Flexibility: Tend to offer up more flexibility and commercially focused resolutions for resolving disputes.
●Relationships: Often allow the parties to preserve working/commercial relationships.
●Publicity: Allow a confidential resolution process which can be beneficial and sometimes obligatory.
●Concurrency: Often these approaches to dispute resolution can be used alongside other methods of dispute resolution, if necessary.
When to seek professional help Seeking legal advice early on does not necessarily mean a serious legal dispute has arisen. Dispute resolution advice is very effective when delivered as an issue first emerges. Lawyers do not need to necessarily take an active role, but can offer legal guidance focused on strategy and resolving complaint situations by diffusing potential disputes, whilst preserving the commercial position for the future.
The most important legal factor
to remember is that a rash statement or decision to stop providing services or products, by sending that e-mail draft without first putting it on the virtual mantelpiece, may cause a serious breach of contract. “If nothing else you risk a serious
argument and potentially a threat of injunctive proceedings. In simple terms, a breach of contract can entitle the party affected by it to terminate the contract and bring legal proceedings against you for damages.
Sending that inflammatory e-mail without considering the consequences could be a huge mistake that ends up costing time and money – which could be better spent managing or growing the business. As a last resort, where parties have become so embroiled that legal
proceedings are threatened and seem the only option, choose to work with experienced lawyers, well-versed in commercial disputes who demonstrate a commitment to an early, pragmatic, commercial and cost-effective resolution.
About the author Gemma Carson is a partner at law firm Wright Hassall and heads the Commercial Litigation team. She specialises in commercial litigation and has a wealth of experience dealing with all types of commercial contract disputes, arbitration proceedings and professional negligence claims.
August 2017 electrical wholesaler | 15
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