3 Common Causes Of Business Litigation In Companies And Businesses Today

Posted on: 5 January 2022


Although every business owner does their best to avoid business litigation, they have to deal with it at some point in their business life. It usually involves disputes associated with business transactions. The transactions could be non-criminal, but they can severely affect your company's functions and growth. Business litigation is often associated with employment, real estate, and construction litigation. Partnership disputes, business torts, unfair competition, or business contracts are also likely causes. The litigation process usually includes arbitration, mediation, motions, administrative hearings, trial, or even appeal, depending on your case. And since the process can be a bit daunting for you, it's advisable to work closely with a corporate litigation lawyer because they will simplify it and attract a positive outcome. But what causes business litigation in most business establishments? Keep reading.

Intellectual Property Infringement

Intellectual property is a critical asset in your business, so you should ensure that no one infringes it. Another company or individual can infringe or interfere with it to realize their selfish interests. Ensure you sue them in court to get compensated for the damages suffered. Alternatively, your lawyer can write a desist letter to warn the infringing business or party. If this doesn't work, you may have to go through business litigation, which can sometimes be a rigorous process. However, a corporate lawyer can help you ease the burden and make the process more manageable.

Breach of Contract

Most businesses operate or run with contracts. In fact, many of them make profits purely from contracts. So when the contracts are breached, the business suffers a huge loss. A contract can be breached when one business, company, or party doesn't stick to it to the end. Business litigation could be the best option for the offended party when this happens, and it could either enforce the contract or protect you from the party alleging that you breached the contract. Any business engaging in the litigation process should be familiar with the contract terms, which are, in most cases, concise and clear.

Employment-Related Discrimination

No company or business wants to be associated with employment-related discrimination, but it sometimes happens. Employees are sometimes discriminated against based on their religion, age, gender, physical qualities, or race, among other aspects. In this case, some of them may sue the employer for the discrimination suffered. And because you don't want this to happen to you, ensure you avoid such employee complaints since you could face business litigation when you least expect it.

Handling business litigation is one of the things you wouldn't want to experience in your business. Unfortunately, any of the above could lead to the litigation process. So try to avoid business litigation, and hire a competent corporate litigation lawyer when it's inevitable.