Commercial litigation takes place when one company or individual takes legal action against a business.
There are several types of disputes that can lead to commercial litigation, which may include:
When one party fails to adhere to the conditions of a contract, it is cause for a contract dispute. During a contract dispute, one party will attempt to enforce the terms of the contract through commercial litigation. Although contracts can be verbal or written, it is better to have a written contract. Contract disputes can put a business in danger, and a written contract can provide proof on the terms that were agreed upon.
There are instances when employees believe they are treated unfairly by the business they work for, which could be due to compensation, gender, or race. There are also times when a company may have a dispute with an employee’s actions, such as stealing the company’s ideas or contract violations.
In most circumstances, business partners usually agree on the decisions and direction of their business. However, there are instances when there are disagreements about business decisions, which is why it is beneficial to have a partnership contract. A partnership contract can effectively solve business disputes between partners, which will help the business succeed.
When minority shareholders disagree with the actions of majority shareholders, there are times when minority shareholders can use commercial litigation to solve certain issues. For example, if majority shareholders are excluding minority shareholders from company decisions, or if majority shareholders misuse company resources, then minority shareholders can take legal action.
A reputable business lawyer can use commercial litigation to solve these types of business disputes. Business disputes can harm a company’s reputation, so it is important to have an experienced San Diego commercial litigation lawyer on your side.