Businesses today face a multitude of legal threats. According to the International Bar Association, class action lawsuits are becoming increasingly popular due to the global nature of modern trade. The World Business Council for Sustainable Development notes that environmental, social, and governance (ESG) lawsuits are also on the rise. Furthermore, the Society for Human Resource Management (SHRM) states that discrimination lawsuits continue to increase – with over 140 Equal Employment Opportunity Commission (EEOC) lawsuits filed within 2023 alone. These are all examples of business & commercial litigation, and they can cause serious problems for companies of all types. Commercial litigation lawyers in Arizona may be able to offer assistance in these situations. For more information, consider calling (480) 320-2310 to schedule a consultation with Harrison Law, PLLC.
Business Litigation vs. Commercial Litigation
Many use the terms “business litigation” and “commercial litigation” interchangeably. Although similar, they are two distinct concepts. Generally speaking, commercial litigation involves relationships between different companies – particularly in the context of contractual law. On the other hand, business litigation typically involves internal matters within a specific company – including the relationships and activities of individuals or departments. These internal relationships may also be contractual in nature. However, internal business activities are regulated by state and federal laws. As a result, business litigation often involves government agencies.
What Are Examples of Commercial Litigation?
Commercial litigation is often “transactional” in nature. In other words, it involves trade. That being said, the majority of commercial litigation involves contracts. For the most part, relationships between companies are only reliable when contracts are in place.
The Movement of Goods
Commercial litigation often involves the movement of goods. There are various transportation and shipping laws that companies must follow, and these laws can become particularly complex in global trade. Import and export activities may also be complicated by tariffs, international trade agreements, duties, and so on. Global and national trade organizations may have their own regulations, including the Grain and Feed Trade Association. These regulations are constantly changing, especially in an era of heightened international sanctions and trade restrictions.
Contract Disputes
In the context of commercial litigation, contractual disputes involve two or more companies. Businesses may sign all kinds of contracts with each other, leading to countless issues. Examples of business contracts include:
- Sales and purchase contracts
- Franchise agreements
- Lease agreements
- Rental agreements
- Joint venture agreements
- Shareholder agreements
- Intellectual property contracts
Intellectual property contracts can lead to complex issues between companies. One company might allow another business to use its intellectual property as part of a distribution agreement or joint venture. However, these ventures can easily lead to disputes if one company begins using the intellectual property in a way that violates the initial agreement.
What Are Examples of Business Litigation?
Business litigation tends to involve people rather than companies. These people could be customers, shareholders, employees, executives, and many others.
Employment Lawsuits
A classic example of business litigation is an employment lawsuit. The United States protects American employees from various acts of misconduct, including harassment, hostile work environments, discrimination, and inadequate compensation. Employers may face lawsuits from not only employees, but also federal agencies like the EEOC. Discrimination and harassment can occur in many different ways. For example, an employee might sue their employee for age discrimination, claiming that they were fired for being too old. Another employee might claim that they experienced “quid pro quo sexual harassment,” which is technically illegal even with consent.
Corporate Crimes
A corporation is a legal entity, and it can face accusations of crimes just like an individual. The federal or state government may allege that a corporation has committed various criminal offenses, including environmental crimes, fraud, money laundering, and antitrust crimes. Antitrust law can be particularly problematic during mergers and acquisitions, as the United States government may determine that the resulting company is a “monopoly.” Financial organizations may be particularly vulnerable to fraud allegations, especially if numerous disgruntled investors have lost money.
Personal Injury
Another common example of business litigation is personal injury. An individual might sue a company because of an allegedly dangerous product – or an injury suffered on business property. Sometimes, corporations face class-action lawsuits involving numerous plaintiffs who all have suffered similar injuries.
What Happens During Commercial Litigation?
The term “litigation” specifically refers to the trial process, and it does not include alternative dispute resolution strategies that occur privately – such as arbitration or mediation. Unlike these private negotiations, commercial litigation occurs in the courtroom. Commercial litigation attorneys represent businesses in these cases, providing oral arguments and presenting evidence. These lawyers might also question witnesses, file motions, and appeal decisions. That being said, mediation generally remains possible throughout the entire trial process.
What Does a Commercial Litigation Lawyer Do?
A commercial litigation lawyer at Harrison Law, PLLC may be able to provide various services. When a company first meets with one of these attorneys, they might discuss their unique priorities and issues during an initial consultation. A commercial litigation may then provide legal advice, recommending a specific course of action. Throughout the fiscal year, companies may ask their commercial litigation attorneys for legal opinions on key issues. Although these attorneys can certainly represent companies in court, they can also help avoid litigation entirely with various proactive steps. The most obvious way to avoid litigation is to create an effective contract with help from an experienced lawyer.
Aside from trial representation, many business litigation lawyers guide their clients through settlement negotiations. This is usually the first step to resolve a contract dispute, and it can help companies avoid expensive trials.
Contact Harrison Law, PLLC
Although commercial litigation is a genuine concern for companies across the United States, there is no need to face these legal threats alone. Business litigation attorneys may be able to help companies defend against lawsuits. They may also assist companies who need to sue individuals or organizations for various misconduct. The world of commercial litigation is wide-ranging, and each case is slightly different. Because of these varying factors, companies often decide to discuss their unique priorities alongside experienced lawyers. To begin this discussion, consider calling (480 320-2310) to schedule a consultation with Harrison Law, PLLC.
© 2024 Matthew W. Harrison and Harrison Law, PLLC All Rights Reserved
This website and article have been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal or financial advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.
