Why Manufacturers Should Stand Their Ground in a Dispute

Another reason mid-size and small manufacturers hesitate to raise a dispute or even defend themselves in disagreements with large buyers is the belief that this may sour the other side from repeat future business.

Interestingly, in many cases where we represent parties involving manufacturers and buyers, the parties actually continue to do business after the litigation. In fact, sometimes, the settlement is structured to require the parties to have future transactions. This is even true among some highly-contentious cases. While this may seem surprising at first, it makes sense. Successful businesses are often ruled by pragmatism rather than emotion. The particulars of a dispute are often confined to facts surrounding a particular product or transaction. Both sides often recognize that the other company has value above and beyond the conflict at hand. They may have had prior transactions that went smoothly and may not want to “throw out the baby with the bathwater” just because of a dispute – even if its a big one. The dispute may involve one particular product the buyer had a bad result with, but the buyer may still have faith in the manufacturer’s other products. However, even if the parties never do business again after a dispute escalates, standing your ground may make good sense. Caving into a large buyer only to preserve the relationship sends a dangerous message of appeasement and sets a bad precedent for future dealings. The buyer is likely to get the sense that they will always get their way, even if you think they are in the wrong.

Standing your ground is not only the smarter approach to a dispute, but it is also likely within your budget. In fact, once you have decided to stand your ground, it is far more likely than not that your dispute will end with a sensible settlement. Atom Law Group represents both international and domestic manufacturers in disputes concerning tools, parts, and machines. Please feel free to contact our firm at info@atom.law or call to schedule for a consultation with one of our team members at 312 943 8000. Or further, explore our services at www.atom.law.