The Basics Of Business Litigation

Tuesday, July 19th, 2016

It is important for every business owner to understand the basics of business litigation. Because legal disputes can arise from a myriad of sources, company owners should be aware of what business litigation is, the common types of business litigation, and how to prepare for disputes in order to maximize results while minimizing costs.

What is business litigation?

This type of litigation involves disputes arising out of commercial and business relationships, including an establishment’s claims against another company, governmental entity, or groups of individuals. The issues are usually complex, rendering an attorney’s understanding of the client’s business a predictable indicator of the litigation’s outcome.

Lawsuits are public records, creating potential PR issues for companies. A company’s reputation is its most important asset: lawsuits can damage reputations, and cause financial damage by decreasing sales and increasing expenses. Effectively handling a dispute from its inception is critical to a company’s bottom line.

Common types of business litigation

There are many different types of business litigation and many situations in which this kind of dispute resolution is necessary. Understanding the common types will help protect your organization from these legal issues.

Business disputes can include, among other things, breach of fiduciary duty, breach of contract, regulatory investigations, trade secret disputes, insurance disputes, post-closing disputes, and partnership disputes.

How to prepare for business litigation

Business owners often take a “wait-and-see approach” to legal disputes. These individuals do not want to contemplate or confront litigation until a suit is filed. Further, many companies commonly make decisions based on fear of litigation, and even threatened litigation.

The first step in preparing for disputes is engaging a legal advisor or attorney to notify immediately in the event a lawsuit is brought or threatened. An experienced attorney can provide immediate advice and support in situations necessitating quick decisions.

Next, prepare for litigation by reviewing your organization and its practices with your attorney. He or she can help you identify which areas of your business are particularly vulnerable to potential legal issues. Your attorney can advise you on ways to protect your company.

Litigation is always one step away. If your business is unprepared, or forced to make critical decisions without the review and advice of experienced counsel, it may find itself disadvantaged before a lawsuit is even brought.

If you are in need of an experienced litigation attorney, contact the Business Law team at Brown & Fortunato in Amarillo, Texas. You can reach us at (806) 345-6300 or stop by our offices at 905 S. Fillmore, Suite 400, in downtown Amarillo. You can also Contact Us by email to learn more about our practice areas.

This information is subject to change. Please check for updates that are more recent than the published date of this article.