Common Cases of Litigation in Costa Rica and How to Avoid Them

In Costa Rica, there are several legal disputes that can lead to litigation, affecting both individuals and businesses. Knowing the most common types of disputes and taking preventive measures can help avoid costly and lengthy legal problems. Here are the most common types of litigation and tips on how to prevent them.

1. Labor Disputes

Disputes between employers and workers are common in the country, and are usually related to:

- Unjustified dismissals

- Payment of benefits and settlements

- Labor harassment

- Breach of contracts

How to prevent them:

- Maintain well-structured and clear labor contracts.

- Comply with labor laws, including minimum wage, social security and Christmas bonus.

- Promote a fair work environment and document any relevant incidents.

2. Property and Lease Disputes

Real estate disputes often involve:

- Breach of leases.

- Evictions.

- Problems with deeds and title deeds.

How to prevent them:

- Verify the legality of a property before buying or renting.

- Formalize agreements in writing.

- Properly register properties and consult with a specialized lawyer.

3. Inheritance and Probate Litigation

Family inheritance disputes may arise due to:

- Lack of a clear and up-to-date will.

- Disputes between heirs.

- Improper assets administration.

How to prevent them:

- Draft a will with legal advice.

- Keep heirs informed about the assets distribution.

- Avoid informality in the administration of family estates.

4. Traffic Accident Claims

Accident claims usually involve:

- Liability for damages to third parties.

- Insurance non-compliance.

- Negligent driving.

How to prevent them:

- Keep adequate automobile insurance in force.

- Respect traffic regulations and avoid drinking alcohol while driving.

- Document any incident with photographic evidence and witnesses.

5. Business and Commercial Disputes

Business disputes may arise from:

- Breach of commercial contracts.

- Problems between partners or shareholders.

- Misuse of trademarks and intellectual property.

How to prevent them:

- Formalize contracts with clear terms and legal advice.

- Register trademarks and intellectual property rights.

- Establish clear agreements between partners from the beginning of the business.

Conclusion

Many legal disputes can be avoided with prevention, proper documentation and timely legal advice. Having well-drafted contracts, complying with current regulations and seeking to resolve disputes before going to court can save you time and money.

If you need legal guidance to prevent or resolve a conflict, contact us and receive specialized advice!