What’s the first thing to do when you come across a Legal Dispute?
Published on 25/02/26
Legal disputes often arise unexpectedly - whether it’s a disagreement with a neighbour, a contract issue, housing matter or employment dispute. Whatever the situation, taking the right steps early on helps protect your position for the legal process ahead.
Here are some key actions to take as soon as you or your business face a legal issue.
Step 1: Gather and preserve the facts
Before emotions escalate, or communication breaks down between parties, make sure you have a clear understanding of what has happened. Take time to:
- Document the facts and events as soon as possible – including dates, times and what was said or done
- Collecting relevant evidence such as contracts, texts/emails, photo documentation, invoices, recordings and any applicable policies
- Identify key dates and build a timeline
- Record who is involved, including any potential witnesses
Step 2: Seek early legal advice
Before responding to any other party or legal documentation, it’s important that you fully understand your position and identify any legal risk.
Many people, through their home, business, landlord or motor policy may have access to legal expenses insurance which includes access to free legal support. ARAG policyholders can receive free legal advice 24/7, 365 days a year.
Now you have the relevant facts and evidence, speaking to a legal adviser at this stage can help you:
Once you have collected the relevant facts, speaking to a legal advisor can help you:
- Understand your legal rights clearly
- Identify potential risks or liabilities
- Explore and identify your legal options
- Avoid unnecessary costs
- Consider early settlement or alternative solutions
Step 3: Consider your resolution options
Once you understand your position legally, you can then explore appropriate ways to resolve the dispute. This might include:
- Informal discussions to reach a mutual agreement
- Exploring internal processes where appropriate
- Written correspondence, such as a cease-and-desist letter
- Mediation
- Alternative Dispute Resolution
- Formal negotiation
- Issuing legal proceedings
Understanding your options can help you decide on the most appropriate route for you. It is always important to consider that Legal proceedings can take significant time, and you could incur substantial costs.
Legal action should generally be considered as a last resort option. If proceedings cannot be avoided, you should check whether you have a legal expenses policy and understand what it covers. This may help reduce the cost of instructing a legal representative to act on your behalf.
Conclusion
Taking prompt, structure steps when a legal dispute arises helps you make informed decisions and protect your interests. By gathering all the facts, seeking early legal advice and carefully considering your resolution options, you give yourself the best change of resolving the issue efficiently and avoiding lengthy, costly proceedings unless necessary.
Ultimately, approaching a dispute with clarity, preparation and legal guidance protects your interests and can significantly influence the outcome of your case.
To utilise the legal advice helpline, check your legal expenses insurance documentation for further information or click here to request a callback (ARAG customers only).
Disclaimer - all information in this article was correct at time of publishing.
