What is Business and Commercial Litigation?
Business or commercial litigation is when a business is involved in a legal dispute. Business law can be quite complex with many different types of lawsuits. It is best to speak with an experienced attorney who can understand your business and lead you through the litigation process.
The terms “business” and “commercial” have the same meaning in terms of the type of litigation and are used interchangeably. A commercial litigation can be between an individual and a business or between two businesses. Basically, this kind of litigation involves disputes that originate from commercial relationships, including a claim against a business, a government entity, or groups of individuals. These issues are usually complex.
Given that lawsuits are public records, a commercial lawsuit can create a potential public relations issue for a company. The reputation of a company is one of its most important assets, so the possibility of a lawsuit damaging a company’s reputation and causing financial damage is at top of mind for a company’s owner. Being able to handle a dispute effectively throughout the litigation process is of utmost importance.
Common Types of Commercial Litigation
There are many different types of commercial litigation and many situations in which this kind of dispute resolution is necessary. Understanding the common types will help protect your organization from these legal issues.
Business disputes often include these:
- Breach of contract
- Breach of fiduciary duty
- Business collections
- Class actions
- Trade secret disputes
- Civil litigation
- Insurance disputes
- Partnership disputes
- Shareholder to shareholder disputes
When two businesses are in litigation, both sides often have claims and defenses, whereas in consumer litigation there is a clear plaintiff and defendant, such as in personal injury law. Because many commercial disputes involve contracts and agreements, litigation can occur in a wide range of courts--state court, federal court, private arbitration, or administrative hearings.
What to Do If Your Business is Sued
Due to the complex nature of business lawsuits, the first step should be retaining a seasoned attorney. Successful commercial litigators will evaluate the merits of a dispute and listen to the client in determining how to prosecute or defend against a claim in the best way.
In many cases a commercial dispute is settled outside of court. Having a skilled attorney who can negotiate with the other party can often lead to a better and more preferred outcome. Settling outside of the court can also result in lower legal fees and court fees.
Again, because of commercial litigation’s complexity, the two most important skills, besides having the knowledge and expertise, are sound judgment and strategic decision-making. When a business has a lot at stake, an error in judgment can destroy a business. This is not an option.
Do not communicate directly with the other party. Anything stated can be used against you in the litigation. Once there is a filed lawsuit, the time for resolving the issues amicably have ended and all communication should be through your attorney.
Speak to a Commercial Litigation Lawyer Today
Our experienced Wake Forest business lawyer can work with you in a commercial litigation. You can rely on our knowledge and skill in getting the best outcome for your company. Contact our law office or call us at (919) 228-4487 or fill out the form below to schedule an appointment with one of our attorneys today. We serve areas including Cary, Raleigh, Apex, Wake Forest, and surrounding areas.