business litigations

Last Updated on November 18, 2022 by Hooria Batool

Business Litigation

Litigation begins when someone files a complaint with a court or an administrative agency. Attorneys who specialize in business litigation handle disputes that arise from various sources. Litigation follows the same procedure regardless of the lawsuit’s proximate cause (direct cause). During the litigation process, opposing parties present motions, witnesses, evidence, and statements. However, it should be remembered that the plaintiff in a criminal action is the government, not a private individual.

The lawsuit procedure may contain the following steps, depending on your case:

  • Motions
  • Administrative hearings
  • Discovery
  • Arbitration
  • Trial
  • Mediation
  • Appeal

The law of business lawsuits is complicated. It entails sifting through many papers, consulting experts, conducting investigations, interviewing witnesses, drafting and replying to various motions, and attending court hearings. It can take years to resolve, especially when dealing with complex issues or significant sums of money.

Business Litigation Lawyers work for whom?

In-house counsel for large corporations or as a litigation lawyer for a more prominent law firm is a common position for a litigation lawyer who specializes in business matters. Nevertheless, many experienced, quality business litigation attorneys work independently. Fortunately, most businesses need to be more involved in legal action to warrant hiring a full-time business litigation attorney in-house.

However, plenty of companies employ business litigation lawyers on staff, such as the behemoth insurance industry.

Types of Business Litigations

Breach of Contract

The most common sort of business litigation is a breach of contract claims. Contracts can control almost every area of your organization, including transactions for goods and services, employment terms, and even your company’s structure. Others’ contractual duties to you are critical to the success of your business. And when someone breaks a contract, the consequences can be terrible.

Automotive Litigation

Another critical legal problem that could affect litigation in the automotive industry due to the coronavirus pandemic is force majeure. When an event outside a party’s control prevents them from performing their contractual responsibilities, this concept may apply to excuse contract performance. If you own or operate a business in the automotive industry and are involved in a legal issue, an automotive litigation attorney in Michigan can assist you in determining what claims and defenses may be available to you.

Breach of Fiduciary Duty

When one person takes on an outstanding obligation to behave in the best interests, they form a fiduciary relationship. Fiduciaries must treat individuals to whom they owe a duty with loyalty and good faith. A violation of fiduciary duty is not established simply because a fiduciary made a business choice that resulted in a loss. According to business lawsuit law, people can behave in good faith and make bad decisions.

Partnership Disputes

When people establish a business together, they usually have similar aims and expectations. On the other hand, a corporate partnership might erode over time when partners argue over how to run the company. A partnership misappropriates cash or assets or participates in an incorrect or illegal activity that harms the business, and a partnership dispute may occur. One of the partners could potentially break the partnership agreement or any written agreements between them.

Class Actions

If a class-action lawsuit is filed against your company, a commercial litigation attorney can assist you in fighting the class certification. Class actions can take a long time to complete and include a variety of legal difficulties. You must hire a lawyer who specializes in class action lawsuits.


Employment claims are frequently based on federal laws, but they might also be found in state laws. Many employment disputes must be handled through administrative authorities, which may follow different procedures than claims filed in state or federal court. An employment lawsuit lawyer can assist you in determining which processes are applicable.

Read More: Who are Civil Lawsuit Lawyers? How do they work? Everything You Need To Know

Fraud disputes

Business fraud is committed through deception or misrepresentation by claiming or omitting something. Furthermore, fraud can take many forms, including commercial fraud, employee fraud, fraud in the purchase or sale of products or services, and various other circumstances. Because fraud disputes can involve elements from multiple legal fields, firms would need a broad range of legal expertise to protect them from the threat of fraud.

Non-compete issues

Non-compete agreements are contracts in which employees promise not to compete with their company for a set period. The number of non-compete lawsuits concerning those contracts has risen recently. Non-compete clauses can range from not soliciting business from a former employer’s clients to not releasing proprietary information. Non-compete agreements are frequently the subject of fast-moving litigation, which may involve requests for immediate relief. Non-compete litigation poses its own set of problems for a company. As a result, business litigation tactics must be developed before non-compete litigation may begin.

Insurance coverage disputes

Typically, businesses do not examine the language of a policy until after a coverage dispute occurs. Differences in interpretation, ambiguity, burdens of proof, and other difficulties can lead to disagreements. As a result, company owners should obtain legal guidance from attorneys who have handled complex contract negotiations and insurance coverage disputes when a coverage issue arises.