Business Disputes and Commercial Litigation

Legal disputes are an inherent risk for any business. And larger companies are more prone to these issues. Understanding the various forms of commercial litigation can help protect businesses and resolve any conflicts that may hinder their operations.

Even with a trustworthy business partner, disputes can arise, whether intentional or not. While alternative dispute resolution methods like mediation and arbitration may be effective in resolving issues without disrupting operations, traditional litigation may be the only viable option in some cases.

What Is Commercial Litigation

This type of litigation is a legal field that encompasses a broad range of disputes related to businesses and work, both on a federal and state level. These legal battles can include product liability lawsuits, debt collection actions, antitrust claims, and much more.

While it’s best to avoid litigation whenever possible, sometimes disputes can’t be resolved through other methods such as mediation or arbitration. In those cases, it’s essential to understand the most common types of commercial disputes that could affect your business.

Here are some examples of the types of cases that fall under the umbrella of commercial litigation:

• Non-compete agreement disputes – When one party believes that a non-compete agreement is too restrictive or when one party has allegedly violated the terms of the agreement.
• Franchise disputes – When there’s a disagreement between a franchisor and a franchisee, such as over the use of intellectual property or the interpretation of contract terms.
• Breach of fiduciary duty cases – When a fiduciary, such as a corporate officer or director, is accused of violating their obligation to act in the best interest of their client or employer.
• Antitrust and trade actions – Legal disputes that arise over antitrust violations, unfair trade practices, price fixing, or other issues related to competition in the marketplace.
• Business dissolutions – When partners or shareholders in a business can’t agree on how to dissolve the company or when one party feels they’ve been unfairly excluded from the decision-making process.
• Employment disputes – Disputes between employers and employees, including wrongful termination, discrimination, and harassment claims.
• Debt collection actions – When a business is owed money and has exhausted other collection methods, it may turn to legal action to recover the debt.
• Consumer fraud and consumer protection issues – When a business is accused of engaging in fraudulent or deceptive practices or when there’s a question about whether a business has violated consumer protection laws.
• Contract disputes, including breach of contract – Legal disputes that arise when one party alleges that the other has violated the terms of a contract.
• Tortious interference with contracts or business relationships – When a third party’s actions interfere with an existing business relationship, such as by inducing a breach of contract.
• Uniform Commercial Code (UCC) disputes – Legal disputes that arise over the interpretation or application of the UCC, which governs commercial transactions in the US.
• Shareholder and partnership disputes – Disputes between shareholders or partners in a business, such as over control or profit sharing.
• Disputes over corporate management and control – When there’s a disagreement over who should be in charge of a business or when one party believes that the other has mismanaged the company.

Types of Disputes

By understanding these common types of disputes, you can take steps to avoid them and protect your business from potentially costly legal battles.

1. Contract disputes can occur when one or more parties fail to comply with the terms of the legal agreement. The injured party can seek various remedies.
2. Tortious interference refers to the intentional or negligent interference of a third party in a legal contract, which caused damages to one or more parties. Examples of business torts include unfair competition and violations of non-compete agreements.
3. Antitrust laws aim to prevent anti-competitive behavior and unfair practices that harm consumers and businesses. Violations of these regulations may lead to litigation.
4. Corporate disputes may arise within a company due to disagreements.

Avoid the Negative Effects of Commercial Disputes

Dealing with commercial disputes can significantly impact your business, which is why it’s crucial to take proactive measures to minimize the risks. One way to do this is by seeking legal advice at the earliest stages of a dispute. If legal action is unavoidable, you’ll want to work with an experienced expert, like Judge Ruben Castillo, who can help you navigate the complexities of commercial litigation and achieve the best possible outcome.