Business Litigation
Key Takeaways
- Common types of business disputes include breach of contract, intellectual property, and insurance claims.
- Intellectual property disputes can involve breach of non-compete clauses and theft of trade secrets.
- Alternate dispute resolution (ADR), including arbitration and mediation, provides an alternative to litigation.
Business disputes can range from minor disputes to major antitrust cases worth billions of dollars. In commercial disputes, businesses can negotiate resolutions without involving trial lawyers. But when negotiations break down, business litigation may be the only option.
Many business law cases depend on state law. This page overviews business litigation. A local lawyer will be able to give you the best legal advice about your situation. Talk to a business litigation attorney for legal advice about your legal disputes.
What Are Common Types of Business Disputes?
Running a business involves dealing with so many parties. This includes government agencies, clients, customers, suppliers, employees, and other businesses. Any of these areas can involve a legal dispute that can interfere with running your company. Common types of business disputes include:
- Breach of contract
- Commercial real estate disputes
- Intellectual property rights
- Shareholder derivative lawsuits
- Product liability claims
- Breach of fiduciary duty
- Employment law
Intellectual Property Disagreements
Intellectual property (IP) involves the ownership of creative designs, inventions, and patents. Companies spend a lot of research and development money to develop unique and valuable new systems, software, and products. Companies want to protect their trade secrets from competitors.
A company using another company’s intellectual property can lead to litigation. This includes a former employee sharing trade secrets with a competitor. This is why many companies use non-compete agreements when hiring skilled employees.
It’s common for businesses to disagree over who has a claim to a particular piece of intellectual property. This often leads to business litigation. If you believe that someone is using your company’s intellectual property, you may have a claim for damages. You may need to mount a legal defense if a company accuses you of stealing its intellectual property.
Breach of Fiduciary Duty
A fiduciary is someone in a position of trust. They have a duty to act in your best interests. Fiduciaries are also supposed to avoid any conflicts of interest that put their interests over yours. Examples of fiduciaries include lawyers, financial advisors, and corporate directors.
A breach of fiduciary duty is a common claim in different kinds of business litigation cases. Depending on the business relationship, someone may owe a fiduciary obligation to a business. When a fiduciary duty exists, it’s unlawful for the fiduciary to harm their client or fail to act in their best interests.
Insurance Disputes
Insurance disputes can involve claims against another business’s insurance company or their own insurance. Commercial insurance companies can be difficult to deal with, especially when a small business is trying to make a claim.
Sometimes, an insurance company will try to deny or undervalue a legitimate claim. In these situations, your business can file a lawsuit to get the insurance compensation money that you are owed.
Breach of Contract Claims
Responsible business practices use contracts when doing business with another person or company. A contract can help avoid a lot of potential disputes by putting all the terms in writing. It also spells out the rights and obligations of each party. If there’s a dispute, a good contract should detail how to resolve the dispute.
Still, there can be disagreements about who breached the contract or the remedies for a breach. Business contracts often have an arbitration clause to avoid courtroom litigation. If you have questions about preparing business contracts that can help you avoid litigation, talk to a legal professional about your business’ legal issues.
Alternative Dispute Resolution
Alternate dispute resolution (ADR) provides an alternative to litigation matters. For business litigation cases, the most common types of ADR are mediation and arbitration. Some business contracts require arbitration. Arbitration is like a mini-trial that doesn’t involve a state court judge or jury trial. Instead, the arbitrator hears both sides and comes up with a decision. Arbitration is less costly and faster than going through the courts.
How Can a Lawyer Help Small Business Owners With Commercial Litigation?
As a small business owner, you want to keep litigation costs to a minimum while ensuring the best outcome possible. A business litigation lawyer can review your case and explain your legal options. A commercial litigation attorney may also be able to help you resolve any legal disputes without going to court to save time and money. If your legal matter can’t be settled, your lawyer can represent you in court.
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