What Is Lawfare?
Lawfare is the strategic use of legal systems and litigation as warfare. It’s a combination of the words “law” and “warfare,” and the term describes a scorched earth, total war-style legal approach aimed at annihilating opponents. Unlike typical legal disputes that seek to resolve a disagreement, lawfare involves using the court system to harass, drain resources, damage reputations, and gain financial, competitive, or political advantage.
This manipulation of the legal process often places small and medium-sized businesses at a severe disadvantage. The goal isn’t necessarily to win the case on its merits, but to make it so costly, stressful, and damaging that the targeted business feels it has no option but to surrender or settle.
Why We’re Speaking Out About Lawfare
Many lawyers aggressively advertise their services to pursue claims against businesses, but few defense firms speak up for the targeted businesses. A client once pointed out to me that billboards and commercials were everywhere urging consumers to sue, but almost no presence from the lawyers defending against these lawsuits.
This silence leaves small and medium-sized businesses unsure of where to turn. Large law firms often overlook smaller businesses or charge fees only major corporations can afford. As a business-focused law firm, it was essential to us to fill that gap and let smaller companies know they have experienced, affordable legal allies prepared to stand with them.
Our firm exists for one reason: to protect businesses. We understand how devastating lawfare can be, and we are committed to guiding our clients through the complexities of litigation with a strategy focused on protecting their interests and future.
Real-World Examples of Lawfare
Lawfare has gained more public attention recently, particularly in the political sphere, but it’s far from a new phenomenon. In the past decade, the rise of third-party litigation funding has turned lawsuits into a profitable industry for hedge funds, wealthy individuals, and commercial litigation firms.
Outside funders are not just backing legal cases but often driving them. With plaintiffs’ attorneys spending millions on advertising to solicit claimants, small businesses are increasingly vulnerable to manufactured or exaggerated lawsuits. The result? Many businesses face legal attacks designed not for justice, but for financial coercion.
In one case our firm handled, a plaintiff’s attorney solicited former customers to flood a business owner with multiple lawsuits, attempting to overwhelm them with litigation threats. In another case, a large corporation attempted to use its resources to pressure a smaller supplier into an unfair settlement by filing a baseless lawsuit. As defense counsel, we have also been named in a retaliatory lawsuit by opposing counsel, which is likely a tactic to pressure us and our client into giving up.
These tactics represent a serious threat to the viability of honest businesses.
The Business Impact of Lawfare
The financial burden can be crushing for a small or medium-sized business. But the cost isn’t just monetary. Owners and staff must divert time, energy, and focus from their core operations to deal with legal battles. Even a baseless claim can take years to resolve and cause lasting damage to a company’s reputation.
Many businesses settle to avoid prolonged litigation, even when they’ve done nothing wrong. Winning doesn’t always feel like a victory when the legal fees are sky-high and the emotional toll is immense. This is why strategic, experienced legal counsel is critical in identifying and responding effectively to lawfare.
Protecting Your Business From Lawfare
Thankfully, there are steps small and medium-sized businesses can take to shield themselves from lawfare:
1. Evaluate Insurance Coverage
Review your business insurance policies to ensure you’re covered for legal costs related to lawsuits. Some insurers offer tailored coverage depending on your industry. Notify your insurer promptly if a legal threat arises—early action can make all the difference.
2. Draft Strong Contracts
Clear, thorough contracts with customers, employees, and partners are your first line of defense. Well-drafted agreements can prevent misunderstandings that might otherwise lead to litigation.
3. Document Everything
Keep meticulous records—emails, invoices, meeting notes, and communications. These documents can serve as powerful evidence if a dispute escalates.
4. Conduct Legal Audits
Regular reviews of your business operations and legal documents can help identify and fix vulnerabilities before they become liabilities. An experienced business attorney can ensure your practices are compliant and sound.
5. Respond Strategically to Legal Threats
If your business is targeted, don’t wait. Contact legal counsel immediately. A knowledgeable lawyer can assess whether a claim is frivolous and help you take appropriate steps, whether filing a motion to dismiss or preparing a strong defense.
Don’t Face Lawfare Alone
Many small businesses don’t realize they’re vulnerable to lawfare until they’re already under attack. By taking proactive steps—like strengthening contracts, securing the proper insurance, and having a trusted legal partner—you can protect your business and focus on what matters most: running and growing your company.
Lawfare is a growing threat, but it’s not unbeatable. With the proper preparation and legal support, your business can survive and thrive in an increasingly litigious world. If your company is under attack or if you need more information on lawfare, contact us.