In my first year as a practicing lawyer, my mentor and senior partner gave me some very wise counsel – “Always be careful what you put on a piece of paper”.

Fast forward to 2009 and I am giving that same advice to my business clients on a regular basis only in reference to a new medium.

In the hectic world of electronic communications, it is “be very careful what you put in an email, blackberry, twitter or any electronic communication. It can come back to haunt you!”

In the past several months I have had to deliver both good and bad news after reviewing electronic communications between clients and their partners. The news is good in those “gotcha” moments when the partner puts in an email exactly what you are saying the deal is, but it is devastating to see something you have written and which will surely come to light in any litigation and work to your disadvantage.

Fair or unfair it takes evidence to win a dispute, and as courts recognize the admissibility of these communications, alternative means of resolving disputes through mediation and arbitration will follow suit and give weight to them.

In addition to the risk of complications in contractual relationships, there is also the broader issue of liability for the words used.

Publication over the internet is a communication to the public once it gets out of the hands of the intended user and you could find yourself having to defend against allegations of libel and slander. Even without communication to the public, what if that disgruntled employee whom you sent a note to in haste and now uses it against you in a charge of constructive dismissal, harassment, violation of human rights etc?

Returning to business agreements, as entrepreneurs we all find ourselves moving forward with big plans and ideas and very often the legal agreements and paperwork follow. In the best cases the plans evolve and expectations both of the deal and the partnership relationships work out.

In the worst of cases, money is advanced, commitments are made and disputes arise before there are any clear and signed legal agreements. At this point, best to stop twittering and emailing and stand back to reassess. Here are some practical steps:

- Review the emails and correspondence to date
- Take a look at what your original objectives were and see where things went wrong
- Consider what you have invested; your anticipated return; and whether you want to settle the dispute and move forward or get out of the deal and recover damages
- With the assistance of a lawyer gather your business objectives and put them in a clear and concise letter with options for either moving forward or winding up the deal.

The great benefit of electronic communications is we have technology that allows us to move forward with tremendous speed and efficiency. As with all technology, we need to remember that it is the tool and we are to use it always in our best interest!

A special thanks to Dorothy J. Brophy B.A., LL.B. for this article. Dorothy can be reached at:

Brody Professional Corporation - www.brophylaw.ca or by phone at (416)698-1543