I have written about the importance of written contracts and specific contract terms in past blog posts. It is equally important to remember that maintaining detailed records can sometimes be just as important as having a written contract in the first place. Inevitably, issues come up during the course of most construction project or business transactions. Whether you properly document your position when these issues arise may determine whether you win or lose at trial.
My last trial was a dispute between a homeowner and contractor on a residential project. My client and the homeowner were the primary witnesses at trial and of course they had conflicting versions of what occurred during the course of the project. I believe that one of the primary reasons we prevailed at trial was because my client kept meticulous records including emails, letters, and photographs, which supported his version of what occurred during the project.
Witness testimony is subject to bias and recollection of past events. This is important because most trials take place several years after the dispute actually occurred. This is why it is important to put everything in written form as soon as any dispute arises. Historically, documentation meant sending a letter or a fax. However, in today’s electronic age, emails and even text messages have become the preferred method of communication among many business professionals. However you choose to communicate, the important thing is to clearly document your position in writing and maintain a file of these records in the event you are faced with the possibility of litigation.