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What Exactly is Commercial Litigation?

— June 6, 2022

In a nutshell, commercial litigation deals with the disputes between commercial entities or between commercial entities and regulatory agencies.

Sometimes the disputes between companies arise and the only solution is to pursue legal recourse. Disputes come from a variety of sources like regulators, competitors, creditors, suppliers, or clients. Commercial litigation covers different types of legal actions and disputes. This is an extensive area and the lawyers who engage in this practice are true experts.

Commercial litigations are costly and disruptive. Its outcome has a major impact on how the company does business. For that reason, the aim of the parties involved in a commercial litigation dispute is straightforward: to end it as quickly as possible, with few consequences.

What is Commercial Litigation?

In a nutshell, commercial litigation deals with the disputes between commercial entities or between commercial entities and regulatory agencies. Civil litigation, on the other hand, deals with disputes between individuals with no criminal charges like family law, probate law, personal injury law, etc.

Civil litigation and commercial litigation are similar to each other in the following way:

  • The client retains a lawyer to solve a legal concern
  • The lawyer pursues research and investigation, and other necessary procedures
  • The lawyer arranges settlement negotiations and files suit

Business entities that are involved in a legal dispute, are represented by commercial litigation lawyers. The commercial litigation process involves the following situations.

  • It may involve two or more business entities
  • The process can involve complicated and specific contracts or agreements
  • The case can involve many defendants

Examples of Commercial Litigation

There are many different examples of commercial litigation. Here are some of them:

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  • Tax disputes
  • Construction claims
  • Real estate disputes
  • Environmental concerns
  • Employment cases
  • Insurance coverage cases
  • Security litigation
  • Shareholder disputes
  • Misrepresentation actions
  • Intellectual property and Patent infringement cases
  • Breach of contract
  • Business torts

What Do Commercial Litigation Lawyers Do?

Commercial litigation lawyers are trained, educated, and experienced in litigation intended for businesses and business-related litigations. They are able to comprehend alternative dispute resolution methods that include mediation, negotiation, and arbitration.

A commercial litigation lawyer is an expert who represents the company’s best interest in a dispute. The lawyer’s purpose is to protect the company’s rights and to secure the best outcome at the end of the process.

Do You Need a Commercial Litigation Lawyer?

The short answer is yes. If you run a company or business of any kind, it is recommended that you look into legal representation. 

No matter how your business might be well-administrated, it is difficult to foretell the possibility of any dispute in the future. If you do not have legal protection, your company or business might be at a risk. It is a good idea to have a commercial litigation lawyer to protect your business before any issues arise.

Commercial Litigation Cases

If it is possible, it is always best to avoid going to court. Commercial litigation cases have reputational and financial impacts on the company. Finding solutions outside the court is possible, for example, in cases involving intellectual property or contract breaches.

Settling outside the court may be a good strategy if both parties agree to it. By all means, arbitration is not always possible. There are cases where you can’t avoid going to trial. Commercial litigation is a vast and complicated area of law. Disputes arising from a variety of sources can be impossible for any company to avoid for a significant amount of time.

Dealing with legal disputes of all types is the cost of doing business. Finding ways to decrease the time and cost of a legal dispute is essential. Lawsuits are expensive, but they can’t be ignored.

The Bottom Line

The law is a vast field, and one of its areas is commercial litigation. Generally, commercial litigation involves many different types of disputes that arise in a business context like breach of contract cases, class actions, business torts, shareholder issues, etc. Successful commercial litigation lawyers are able to assess the merits of a dispute. Creativity, efficiency, and good judgment are crucial for intelligently positioning these disputes.

Understanding the motivation of the litigation is very important. Commercial litigations are a reality in today’s business world. Business disputes usually quickly explode so it is necessary to map out the strategy with particular goals in mind.

Important thing is to resolve any dispute fast and cost-effectively with minimum disruption to day-to-day business activities.

If your business is facing a lawsuit, it is fundamental to involve experienced commercial litigation lawyers early in the process. They will oversee and coordinate the gathering of evidence, among other things, which is often a key to a successful and efficient outcome.

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