Business litigation refers to any legal dispute involving companies, partnerships, corporations, or other recognized businesses. California business owners may enter into litigation for a variety of reasons, and awareness about the process may help protect their finances and company.
Types of business litigation
Also known as commercial litigation, business litigation covers a variety of disputes that arise between businesses and other entities. Some of the most common types include:
- Employment law disputes
- Breach of fiduciary duty claims
- Breach of contract
- Intellectual property disputes
- Corporate misconduct
- Shareholder disputes
- Class action lawsuits
- Trade secrets lawsuits
Some types of business litigation refers to lawsuits filed against organizations for breaking state or federal regulatory laws. Common allegations include antitrust violations and unsafe work environments.
Trials and alternatives
Not every business legal dispute ends up going to a trial. Business litigation attorneys may help companies find resolutions before the case reaches that point. These types of attorneys assist with non-trial legal proceedings, such as:
- Legal motions
- Filing appeals
- Administrative hearings
Preparation for litigation
If your company faces business litigation, being prepared may protect your company’s finances and ability to continue practicing. Take these steps to begin preparing for commercial litigation:
- Notify your insurance company.
- Prevent the destruction of any relevant documents.
- Figure out which employees possess relevant knowledge about the issue.
- Collect any relevant evidence to support your case.
- Reduce communications
Deciding your course of action
Business litigation may involve a long court process that involves the testimony of expert witnesses, numerous hearings, and filing repeated motions. Many companies decide to settle outside of court to save time and money on legal bills. Other companies worry more about their reputations and decide to defend their company through potentially complex court proceedings. The sooner you make that decision, the sooner you can return to the daily concerns that come with running your business.