Running a business gets more complicated as a company grows bigger. As a company scales, they employ more people, service more clients, and trade with more companies. Business laws govern every step a company takes to succeed. If the business fails to follow these regulations, other parties will eventually see the violations, and events could lead to lawsuits.
Business and civil litigations can be costly and time-consuming. According to one of the top California business law firms Blake & Ayaz, the pre-litigation stage is critical because it attempts to resolve the problem before filing lawsuits. These negotiations are best left handled by experienced business litigation lawyers.
What is Business Litigation?
Business litigation is the resolution of business-related disputes in court. Two opposing parties will defend or enforce their legal rights. The result is usually a settlement, or in more complicated cases, the judge or jury makes the final decision.
Business litigation is very complicated because it involves hearings, arbitration, mediation, trial, and appeal. You also need to prepare various documents such as investigation evidence, response to motions, and filing court documents. You need to consult with experts and talk to witnesses.
Common Types of Business Litigation
Here are the different types of business litigation and their explanations.
Breach of contract
Contracts are created between two or more parties to follow specific rules and agreements. When one of the signatories of the contract deviates from the agreement, that is a breach of contract. This breach entails the other signatories to hold the party who failed to perform accountably.
Labor and employment
There are different employment disputes, including wrongful termination, overtime pay, breach of employment contracts, discrimination claims, and office harassment. Labor laws can differ according to state, particularly in employee wages. Labor unions file most employment disputes such as unfair labor practices. Yet, there are also individual complainants, particularly in sexual harassment cases.
Real estate litigation
Any property-related dispute between agents, brokers, sellers, buyers, tenants, and landlords, can lead to real estate litigation. There are different kinds of conflicts, including easements, construction disputes, and issues on commercial properties.
Intellectual property
Disputes on intellectual property rights involve another party using your trademark logo, design, symbol, device, word, or phrase. As someone who went through the process and legal procedures of filing intellectual property, you have full ownership and legal grounds to file a case on those who use your property without permission. Patent, trademark, and copyright infringements all fall under intellectual property disputes.
Collection cases
When you’re selling goods, services, and finance, there will be times when collecting invoices from clients, partners, and vendors can be difficult. If your company has given the maximum time to pay and they are still unable to comply or refuse to pay for what you are legally owed, you can get the assistance of an attorney to help demand the payment.
Partnership disputes
It is very common for business partners to have common goals when starting a company but develop differences along the way. Sometimes this inability to meet eye-to-eye on business matters can lead to unfortunate events such as misappropriated funds, breach of partnership agreements, and even engaging in illegal activities.
Breach of fiduciary duty
A breach of fiduciary duty occurs when a professional is legally obligated to always act with loyalty and good faith towards a client but fails to do so. Professions with fiduciary duties include lawyers, real estate agents, and directors of corporations. Examples of breach of fiduciary duties are failure to disclose important information, misusing funds, and engaging in illegal activity.
Tort litigation
A tort claim is possible when you or your business suffers a loss due to another party’s intentional negligence. The loss may be damage to health, finances, and contractual obligations. You can file for legal action and get tort claims with the proper evidence. The case filed can include fraud, defamation of character, personal injury, premises liability, and unfair trade practices.
Takeaway
Business litigation is a very complex process that experienced business lawyers best handle. A good lawyer will strive to resolve issues through settlements before it escalates to a more costly and tedious litigation process. However, if the other party refuses to settle, the only recourse is to resolve the matter in court.
