Business disputes that cannot be solved through mediation, arbitration or other forms of negotiation may require litigation. Business entities such as companies and corporations as well as private individuals who have a dispute with a business can use business litigation to seek legal remedy. Through the process of litigation, the parties to the dispute retain attorneys and take their case before a judge, who then determines how to equitably resolve the issue and assist the wronged party with restitution. There are a number of circumstances under which business litigation, also called commercial litigation, may be necessary.
When taking legal action due to a business transaction that has gone awry, it is vital to locate an attorney who practices in the area of business law that applies to the situation. Not all attorneys work within all areas that fall under the business law umbrella. An attorney who commonly handles cases similar to the issues facing a particular business or individual will generally be the best choice. The main aspects of business operation that are included in commercial law include advertising, banking, bankruptcy, marketing, collections, contracts, securities and trade.Choosing an attorney who is well-versed in one or more of those areas can provide a better resolution to the case. When a person or business has been wronged and must seek litigation, the party is not always certain which area of law may apply. When the party consults with an attorney, the attorney will generally guide the party toward the proper area of the law. If the attorney does not work in that area, referral to another trusted colleague may be necessary. That will allow the wronged party to get the representation needed to protect its legal interests.
Breaching fiduciary duty is among the most common reasons why one party connected to a business may bring litigation against another party. A breach of fiduciary duty occurs when one business partner or shareholder fails to operate in a manner consistent with good faith and loyalty. The other party or parties who have been wronged by that person’s actions may seek out business litigation in order to recover damages. Those damages are generally financial, but there are other options, as well.
Business litigation is also used when there has been an infringement of intellectual property rights. Copyrights, trademarks and patents are all protected under the law. If a business infringes on the rights of the holders of any of these intellectual property items, or if an individual infringes upon a business’s right to these items, litigation to seek remedy for the infringement may be necessary. While some companies and individuals may respond to a cease-and-desist letter or a takedown notice, those who refuse to do so may find themselves involved in litigation. Other common reasons for business litigation include finances and insurance. Those who feel they have been cheated out of money, through poor investment advice, for example, may choose to seek out legal remedy if the value of what they lost was high. They may also look for a remedy through the courts if the business they trusted to help them made egregious errors that could be legally actionable. For those who have general litigation questions, an attorney with experience in the area of business litigation can provide answers. If there is a breach of duty or another type of dispute that cannot be resolved another way, that attorney can also help the wronged party proceed with litigation against another person or a company that has caused harm. By working closely with our firm, those who have been wronged — both individuals and companies — can get assistance with their business litigation needs. That can allow them to receive restitution or remedy for the difficulties they have experienced.