Business litigation is very important thing for the business owners. Many sources can cause legal disputes. In order to increase the results while decreasing the input cost every company owner must aware of business litigation, its types and dispute preparation.
This form of litigation covers conflicts resulting from economic and business connections, such as claims against another firm, governmental organization, or groups of persons. The problems are generally complicated, making an attorney’s grasp of the client’s company a reliable predictor of the litigation’s result.
Lawsuits are public records this creates the personal issues for companies. For company its reputation is very important. They have to maintain their reputation. A company’s work is to import and export. Their business is totally depends on the import and export so, they maintain their status. Lawsuits damaged the status of company and also decreased the sales and export also.
Business litigation issues
Business litigation has some critical legal issues. Some of them are listed below
- Breach of contract
- Real estate dispute
- Debt collection
- Legal property dispute
- Share holder oppression
- Industry issue
- Insurance issues
- Product liability
When all these issues started in a business then it is advised that consult with the business litigation attorney. By this a company can understand the issues and resolve them easily without any legal action.
Common types of business litigation
Here are some types of business litigation. Some of them are listed below
1. Breach of contract
This is the most common type of business litigation. Companies work on the contract including the transaction of goods, employment terms and also structure of the company. So, when someone breached the contract it harms the company.
Employment is the other common type of business litigation. There are frequent employment issues. Some of them are listed below
- Retaliation claim
- Wage and hour dispute
- Wrongful termination
- Harassment claims
- Family and medical leave act
This employment claims often involve the federal laws but also depend on individual state law.
3. Class actions
This class action lawsuit arises in many cases. But in business it has devastating effect. Class action is the type where many litigants have been affected. Some common example includes
- Debt collection
- Product liability
- Employment practice
If the class action is filed, it does not mean that the case will proceed to the court. Litigants must show some class certification to the court. After this the process will continue. Issues that have done in past also effect all the members of class. The other representative parties can protect the interest of class in very satisfactory manner.
Class action is the best way to get justice rather than the others. If a person files the class action case against your company then commercial litigation company will help you to get class certification. So, it is important that you have business attorney.
4. Share holder disputes
Shareholder disputes often occur in the company. The dispute occurs when the minority share holder of the company feels that their interest is not protected. So, the minority shareholder can file a case on the majority share holders. The dispute may occur over some issues. Some of them are listed below.
- Breech of shareholder agreement
- Payment of dividends
- Excessive compensation
- Self dealing
Solution of case is depends on the circumstances and also on the shareholders. In some of the cases the problem are solved on small level. But if the dispute is at extreme level, than there is devastating effect of it.
4. Automotive litigation
Automotive litigation is also common in the business. Some of the issues are listed below
- Misappropriation of trade secret
- Product liabilities
- Breach of contract
Due to corona virus pandemic force majeure is other important issue. If a person has business in the automotive litigation and here comes a problem. Then it is advised to visit the business attorney for any type of solution. For any case of automotive litigation there is a better solution of any case.
5. Partnership dispute
When people go in business together, they generally start out with the same expectations and deals. But after some time the partnership may ruin. One is want to become the superior to other. Or many partnership issues arise. The dispute may also occur as one is want to deal with the company but the other partner want to make deal with another company. Dispute may also occur if there is some interest issues or there is problem in funding.
So it often happen that one partner break the deal with other partners and made issues on different things which are not according to him. At that point you have two options. First and better option is, talk to your partner and try to resolve issue. If issue is not solved than try to buy the shares of that person. But if the problem is not solved in meeting then you have to go to court to file your case. At this point you have to heir a lawyer which deals with this problem and gives you solution according to your interest.
How to prepare for business litigation?
Business man often takes a “wait-and-see approach” to some legal disputes. Some companies which do not have any approach make sudden decision based on the fear of litigation. When there is some problem arises then the first step is heir the advisor for the litigation, who immediately advice you and you can do something better for the problem.
Next step is prepared for litigation issues and consult with the advisor so you better can handle the case. Litigation is a sudden act as it can damage your whole business if you are not concentrating. If you need any advisor then you must visit the experienced litigation agency. By this case can be handled and there is hope to maintain the reputation and assets.
Frequently asked questions
Is it important to heir advisor?
Yes, it is quite important to heir a advisor. Without the advisor you cannot run your business.
Business litigation is a long process?
It depends on the case and the circumstances. Sometimes the case solve in few weeks while some of them take months to resolve.
Apart from this if you are interested to know about Five practical tools for business in creating invoices online then visit our Business category.