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Litigation can equate to financial loss. Understanding litigation (and, more importantly, how to prevent it) is part of managing and running a successful business. Think of it as another way money can leave you and your business.
Civil vs. Commercial
It does bear some importance to explain the difference between civil and commercial litigation. Even experienced business owners can confuse the two. Civil litigation is when two or more parties have a legal disagreement that isn’t criminal.
During civil litigation, the person filing (the plaintiff) wants the defendant to compensate them or propel the defendant to do something. For example, a state may sue the President. They aren’t asking for money; they want to force the President to reverse legislation or any number of other things.
It becomes commercial litigation when one of the parties is a business entity. Because of this, it may be more complex and nuanced than a civil litigation matter.
Examples of Commercial Litigation
Business is built on agreements and relationships between people. An unlimited number of disputes could arise, and each one may result in commercial litigation. Here are some examples:
- Intellectual property disputes
- Shareholder disagreements
- Employee and labor issues
- Contractual breaches
Take Action
Even if disputes are inevitable, business litigation doesn’t have to be. One of the most reliable ways of resolving a conflict is by having documentation. If there is a disagreement with an employee or third-party vendor, a signed agreement or contract to reference could be a quicker route to resolution.
Attorneys create custom contracts based on their clients’ needs. Though a DIY contract may be appealing financially, it isn’t as precise as the one a lawyer can write. Ambiguity can lead to further arguments. If the employee or vendor decides to take legal action against you despite having a firm contract in place, your lawyer has solid ground to build your case off of.
The more documentation you have, the more your attorney can work with. When businesses get sued, they often have litigation holds. It is a deliberate act to preserve documentation for your case.
Drucker & Mattia
Regardless of whether you are facing commercial litigation or are looking to meet with a business law attorney to prevent such issues, Drucker & Mattia can assist you. We have large-firm experience but feel like a small neighborhood one. With over four decades of combined experience, let us go to work representing you. Contact us to schedule a free initial consultation.
Drucker & Mattia PLLC
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