Business Litigation FAQ

Business Litigation FAQs

How to Protect Your Business from Lawsuit

Litigation can cripple operations and permanently damage the reputation of even the most powerful businesses. When a company faces a lawsuit or other type of legal proceeding, it can face steep legal costs as well as damage to its ability to attract new employees and clients. There are a number of reasons why a business can face litigation or why litigation may be necessary. Disputes may arise from an alleged breach of contract, allegations of discrimination as well as trade disputes and partnership disputes. Whatever the cause, it is important to seek the help of a skilled attorney to protect your business and its reputation. Below, our Redwood City business litigation attorney and team answer some of the most common questions about handling litigation.

What Is Business Litigation?

Business litigation arises out of disputes between two or more parties who are in a business or commercial relationship. In some cases, one party involved in the dispute may be a government entity. Examples of business litigation may include disputes between shareholders at a company as well as between a business property owner and a construction contracting company.

What If My Business Partner Breaches a Contract?

You should speak with a Redwood City business litigation attorney if your business partner violated the terms of a contractual agreement. In some cases, you can work with an attorney to minimize damage to your business before a breach of contract becomes an issue that must be dealt with in court. That is also true for other scenarios that involved a breach of contract between various parties.

Our Redwood City and Palo Alto business attorney can help you review possible resolutions to your situation.

Are There Alternatives to Business Litigation?

There are methods for resolving business disputes that do not involve lawsuits. This can then keep you outside of the court. Depending on the circumstances, you may then be able to resolve the issue through arbitration or mediation. These private and less-expensive alternative dispute resolution methods are where a third party helps both sides resolve their differences.

  • Arbitration. With arbitration, an arbitrator makes a decision to resolve the dispute after reviewing the available evidence and hearing both sides make their case. In some cases, arbitrators are former judges.
  • Mediation. Mediation is somewhat similar. With mediation, a neutral third party helps both sides come to a mutually agreeable resolution.

Both options may be less expensive than traditional litigation. In addition, arbitration and mediation are more private, which is useful for a business that wants to protect its reputation. Arbitration and mediation can also be more flexible for businesses. As a business owner, you and the other parties involved with the dispute may be able to set the hours where arbitration or mediation takes place.

What Are Common Reasons for Business Litigation?

Businesses face or pursue litigation for many reasons, including in the following scenarios:

  • Partnership agreement violations. You may pursue litigation or face litigation for partnership agreement violations. If your partner violated the spirit of a contractual agreement, then we can review options for resolving the conflict. Depending on the circumstances, you may then be able to obtain a settlement or seek the other party‚Äôs expulsion from the company.
  • Contract breaches. Several parties may disagree over the terms of a contract. In some cases, one party may violate the contract outright. There are a few ways to remedy a breach of contract. First, the party in breach of the contract may correct the breach. Additionally, alternative dispute resolution could also resolve the situation. However, litigation is another possible option. In this case, you may be able to then pursue monetary damages against the party who violated the contract.
  • Disputes over mergers and acquisitions. Parties involved with a merger or acquisition may have a dispute. These disputes have to be resolved as quickly as possible.
  • Shareholder disputes. Businesses may come into conflict with their stakeholders. In a shareholder dispute, our firm can help with discretion disagreements, contribution differences and shareholder agreement breaches.
  • Defective work claims. If your business suffered damages due to defects in workmanship or defects in materials, then our firm may be able to help you recover compensation. Defective construction may be a reason to pursue litigation against a construction or contracting company.
  • General civil litigation. Businesses may face lawsuits from current or former employees over allegations of harassment or wrongful termination. Additionally, businesses can face lawsuits when defective products harm consumers. Civil lawsuits can cost companies millions of dollars. Thus, it is important to hire an experienced business law attorney to defend against employment and personal injury lawsuits.

How Do I Find an Experienced Business Litigation Attorney Near Me?

To hire an attorney, you must first understand why specifically you need an attorney. If a legal dispute arises and involves your business, you are likely searching for a business litigation lawyer near you or your business.

Businesses should be careful while choosing an attorney to handle litigation. Attorneys who handle these cases should have a deep understanding of local, state and federal law as well as possess advanced business acumen.

Before hiring an attorney, a business should consult with several attorneys, ask questions and compare to understand which attorney fits the needs of the situation.

Do You Have More Questions? Schedule a Free Consultation With Our Business Litigation Attorney

Winghart Law Group, Inc can answer questions you have about business litigation or alternative dispute resolution in California. You can schedule a free initial consultation with us by dialing (650) 456-2925 or by using the contact form on our site.

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