What Is Business Litigation?

business-1-300x215In order to control legal liability, all business owners need to have a firm understanding of the answers to the question, “What is business litigation?” Litigation is the claim of damages brought by an accuser, known as the complainant, against the company, which is the litigant. A business litigator defends companies involved in litigation. The litigation generally arises from an alleged wrongdoing on the part of the company. These can include product design negligence, breaches of contract law, or safety liabilities to employees. Complainants may include customers, employees, or other businesses. In some cases, companies are subject to class action suits from a group of complainants.

Stages Of Litigation Resolution

Most courts are extremely overburdened, and judges are therefore anxious to resolve litigation cases without resorting to a trial. One of the processes used to avoid trial is mediation, where attorneys for each side work with a neutral party to reach a settlement. Although the third party will generally be a skilled legal mediator, the business lawyers themselves must also be skilled at mediation. This is a common process used to resolved wrongful termination allegations.

A second alternative process is arbitration. It also involves two representative attorneys and a third party. However, the third party does not mediate. He or she makes a decision based on the presentations of each counsel. In this way, the mediator acts in a similar way to a trial decided by the judge, as opposed to a jury trial.

Common Forms Of Litigation

A business attorney may be called on for some of the following common types of litigation.

  • Contract disputes – defend against accusations of non-performance, untimely performance, or other alleged breaches of contract.
  • Construction disputes – deal with litigation concerning non-performance to specification, alleged improper use of materials, or supplier liens.
  • Debtor-Creditor disputes – these include such issues as recovery of assets, lender liability, or lien foreclosures.

Avoiding Litigation

Perhaps the most important function of a business lawyer is to help a company structure its operations to avoid litigation. A business owner who understands the answer to the question, “What is business litigation?” will be in a good position to minimize accusations of wrongdoing and deal with litigation if it arises. Call (949) 582-1544 today to speak with a business litigation attorney from Mosher & Skorina during a FREE consultation.

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