In a perfect world, dishonesty and corruption in business dealings wouldn’t exist but disagreements are the sad reality. You need to know what actions to take should a flare-up turn into a major legal matter requiring litigation.
What is commercial litigation?
In general terms, commercial litigation differs from civil litigation in that it involves any dispute within the business context. It can either be a private individual or a business entity that has a legal issue with another business entity. Examples of commercial litigation include breach of contract cases, investment fraud, class actions, business torts, breach of fiduciary duty allegations, and shareholder issues.
When business disputes arise that cannot be resolved through negotiation, mediation or arbitration proceedings outside of court, commercial litigation and the services of an attorney may be necessary. The litigation process involves presenting the issues in court before a judge or magistrate. The services of an experienced litigator, who has the client’s best interests at heart, is vital to navigate these lengthy and often expensive legal proceedings.
Common business disputes
Unethical behavior on the part of a financial advisor or investment broker can be devastating for an investor. If there is significant financial loss as a result of the unethical behavior, an investor can lodge a commercial dispute against that business. Investment fraud includes an investment company pushing inappropriate investments on clients or failing to fully disclose all the investment information.
Intellectual property breach
If you are the legal owner of an invention or work, any infringement on the patent, trademark or copyright can be grounds for commercial litigation.
Fiduciary duty violation
A fiduciary duty is when a business member is expected to operate in good faith and loyalty toward the other partners involved. If a business member has acquired ill-gotten profit, benefit or gain from the business relationship, they can be seen as violating their fiduciary duties. Business litigation can often be the only means for the other business partners to recover financial losses.
Insurance claim disputes
Should disaster strike and the business insurance company attempts to avoid paying out a legitimate claim, litigation may be necessary. Insurance companies may also undervalue property or assets and then not pay out the amount the business is legally entitled to. Another scenario involves the use of confusing or deceptive wording in the insurance contract leading to the rejection of an insurance claim.
Delicts involve injury to another person’s body or damage to their property, while business delicts involve “injury” to a person’s business interests. Business delicts often involve intentional and improper interference with the business interests of another.
These are just some of the many possible grounds for commercial litigation. When business disputes occur, finding a resolution outside of court is preferable but in cases where this is not possible, a good litigation attorney is needed to protect a company’s business interests.
Stephanie Aproskie Attorneys specialises in commercial litigation law, as well as several other areas of law in an umbrella of legal services. Contact Us Now for the best legal advice and legal council.