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When Should You Sue?

Before you file a lawsuit, you need to decide a few things about your potential case.

You need to answer three fundamental -- and fairly obvious -- questions as part of deciding whether it's worthwhile to bring a lawsuit to court:

  • Do I have a good case?
  • Am I comfortable with the idea of a compromise settlement or going to mediation?
  • Assuming a lawsuit is my best or only option, can I collect if I win?

If the answer to any of these questions is no, you probably won't want to sue.

Do I Have a Good Case?

To figure out whether you have a good case, it helps to know that lawyers break each type of lawsuit ("cause of action" in attorney-speak) into a short list of legally required elements. It follows that as long as you know what the elements are for your type of lawsuit, it's usually fairly easy to determine whether you have a good case. For example, a lawsuit against a contractor for doing substandard construction would be for breach of contract (because the contractor agreed either orally or in writing to do the job properly). The legal elements for this type of lawsuit are as follows:

Contract formation. You must show that you have a legally binding contract with the other party. If you have a written agreement, this element is especially easy to prove. Without a written contract, you will have to show that you had an enforceable oral (spoken) contract, or that an enforceable contract can be implied from the circumstances of your situation.

Performance. You must prove that you did what was required of you under the terms of the contract. Assuming you have made agreed-on payments and otherwise cooperated, you should have no problem with this element.


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