What You Need to Know About Business Litigation

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business litigation

Running a business comes with its own set of challenges and hurdles. One of the more crucial and important aspects of running a successful business is the legal aspect. Not having the legal aspect of your business covered can lead to major problems later down the road.

Having a good grasp of the legalities of running a business will give you and your business an extra edge and ultimately help you run the business following the laws of the land.

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What You Need to Know About Business Litigation

Conscious businesses take extra steps to make sure all their dealings and practices are legal and one such aspect of the legal process is Business litigation.

What is Business Litigation?

What is Business Litigation?

Broadly defined, Business litigation, also called commercial litigation, mainly deals with such things as the formation of companies, mergers, acquisitions, and shareholder rights and practices of taking legal actions against a business or even steps to avoid litigations all together in these areas.

Business litigation occurs when one party decides that the other party has done something illegal or has breached a contract. These can range from disputes and lawsuits and can encompass a wide range of activities. Litigations can be both related to your business or the core of your business.

Business litigation lawyers give legal advice when litigation is taking place.

When it comes to Business litigations, there can be many different parties involved in a lawsuit. These can be:

  1. Business partners
  2. Other corporations
  3. Shareholders
  4. Directors
  5. Members
  6. Employees of the organization

The Types of Business Litigation

The Types of Business Litigation

Contract Breaches

Legal actions taken when a party fails to honor a contract and legal action is taken against them.

Intelligent Property Litigation

An IP is the legal property of its owner. Intelligent Property Litigation is caused because of infringement of copyright, patents, or trademarks.

Litigation Related to Securities

These are fraud lawsuits generally filed by investors against the issuers of securities.

Antitrust Litigation

Antitrust Litigations deals with charges made against a company whose practices are ought to be anti-competitive and has failed to comply with competition regulations.

Class actions by Consumers

If a group of consumers takes legal actions collectively against a corporation/company, this is known as consumer class actions. The basis for these litigations can be faulty products or services, breach of privacy or even fraud.

Defamation Cases

These are cases when a party distributes false statements about you intending to damage your reputation. In these types of cases, it is required to prove that a statement is defamatory.


Corporations/companies that are deemed to have gone against the regulations of a certain industry are faced with these types of litigations. Regulatory litigations can be either civil or criminal.

It is worthy of note that the types of litigations are not limited to these types. Depending on the nature of the litigation there are other types of litigations as well.

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The 6 Steps of Business Litigation

The 6 Steps of Business Litigation

The steps to a Business or commercial litigation are pretty straight-forward and follow logical chronological order. These stages can also vary from state to state.

The Initial Demand

Lawsuits are not cheap and they are time-consuming, to say the least. Before filing a lawsuit, initial demand is made to see if both the parties can negotiate to agree.

Filing the Lawsuit

In the case of an agreement not being made, then a lawsuit is then filed with the complaint you have. Also, at this point, you should be hiring a lawyer who is experienced in the area of the law. This is also the time where the other party will be readying an answer to counter your claim.

Pleading Stage

This stage where all the formal documents filed will have the positions of the parties.

Discover Stage

Parties exchange the information back and forth amongst each other, this is done to mitigate any surprises in court.

Summary Judgement Motion

In this stage, by filing certain motions, the parties can attempt to win the whole lawsuit or a certain part of the lawsuit.


This is the final stage where all the pieces of evidence are shown and the judge or jury renders a verdict.



Q. Are statements of works to be considered as business contracts?

Ans. A statement of work is to be considered as a business contract since when someone signs a contract, they have agreed to work for certain hours for a fixed pay rate.

Q. I do not own a business, will I be needing a business litigation attorney?

Ans. Even if you are not a business owner, you might still need a business attorney is cases such as house repairs. This scenario can arise if a contractor you hired for home repairs, say hires sub-contractors and an issue with proper compensation occurs.

Q. What are some of the best ways to deal with a contract dispute?

Ans. Generally, the order of best ways goes as such:

You would always want to resolve the dispute as quickly and easily as possible and only go for litigation when you believe all other steps have failed for you to come to an understanding.

Q. What is the proper way to respond and deal with partnership disputes or internal Business disputes?

Ans. Although business partners tend to have some understanding between them and can resolve issues and disputed amongst themselves, in the case they cannot, it is always a good idea to get outside legal counsel can help.

Business law and business litigation are very important aspects one should have a good grasp over to run their business smoothly and make sure that their business complies with the legal laws of the land. Hiring an attorney who is specialized in the field will give you access to experts who can deal with legal problems that may arise, some of which are inevitable in running businesses.

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kacnika mom
3 min read

kacnika mom
3 min read

kacnika mom
3 min read

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