If you are currently involved in a disagreement regarding business matters, you may be wondering what your legal options are. What is business litigation and is litigation the best way to resolve your dispute? How long does the legal process take? Do you need an attorney to represent your best interests during negotiations? These are just some of the questions that may be going through your mind.
What is Business Litigation?
There are many laws in place that provide guidelines regarding how companies and corporations must be run. These laws have an impact on what is and is not permitted. When there is a dispute within or outside business groups involving legal matters of business, litigation may be needed to resolve the issues of conflict.
- When is Business Litigation Needed? When there is a disagreement between two business parties, arbitration or mediation should be considered. Business litigation typically only occurs after meetings between disputants have failed and arbitration from an impartial party did not prove helpful. It is common for business disagreements to result in litigation.
- Will My Case Go to Court? Not all business litigation cases end up in court. In many cases, a settlement is made out of court before a trial becomes necessary. However, it is not advisable to agree on a deal out of court unless the offer is fair. It is common for legal counsel to offer inadequate settlements to make the case go away.
- How Long Does Business Litigation Take? How long your litigation may take depends upon the complexity of your case. In some cases, the mere threat of litigation is enough to cause a breakthrough in the negotiation process. When the two parties are nowhere near an agreement, however, the legal proceedings may take months or even years.
- What is a Non-Compete Agreement? Some business litigation cases involve a non-compete agreement. This is when a new employee is asked to sign a non-compete agreement that prohibits him or her from working for the employer’s competitors. It also prevents the employee from leaking trade secrets. Employees who violate their non-compete agreement may be held liable for a breach of contract.
- What is a Breach of Contract? A breach of contract occurs anytime a party violates a legally binding agreement or contract. Just about any violation of the terms of a contract or agreement will be considered a breach of contract. Companies need help proving that a breach occurred and employees often need help proving that they did not knowingly violate the terms of their agreement.
- Do You Need an Attorney? Even if you are certain that you were wronged, it is still important that you have support and guidance during the negotiation process. Business disputes are complex and a deep knowledge of the legal system is needed to make sure that the dispute is resolved in a fair matter. An experienced business law attorney can help you make informed decisions about these matters that can affect your financial future.
Business Litigation FAQ
Q: How will litigation help resolve my business dispute?
A: It is likely that you already tried to resolve your business dispute through alternative means, such as arbitration or mediation, and it didn’t work out. This actually happens quite often since business disputes are generally contentious affairs and involve high stakes for everyone involved.
Through litigation, you can resolve the dispute by invoking laws that deal with contracts, non-compete agreements, trademarks, and other business-related issues. You may settle your dispute out of court and avoid a trial. However, make sure your attorney approves of the settlement before you close the deal. The other party may try to offer you significantly less than you would win in a trial.
Q: What are the different disputes which can lead to business litigation?
A: There are many different types of disputes which can lead to business litigation, including:
- Contractual disputes
- Unfair business practices
- Failure to pay for services
- Trade secrets
- Partnership and shareholder disputes
- Commercial lease disputes
- Employment agreements
If you believe you have a case for business litigation, it is highly advised that you consult with an attorney to discuss your rights and legal options.
Q: How long will it take to resolve my business litigation case?
A: It really depends on the complexity of the circumstances surrounding your dispute. Generally, the more issues there are to be discussed, and the more parties there are involved, the longer your case will be. It may take months, even years, until all the loose ends are tied. You can receive an estimate of your case’s length from a knowledgeable business law attorney.
Q: What constitutes a breach of contract?
A: In most businesses, a contract is drawn up for every new hire, partnership, and exchange of services and/or goods. Each contract has very specific terms which cannot be violated by any of the involved parties, lest they want to commit a breach of contract.
Q: What is a non-compete agreement?
A: Some employers require their employees to sign a non-compete agreement upon being hired. This contractually obligates them to never go work for the employer’s competitor. Theoretically, this agreement prevents unfair competition practices, such as giving away trade secrets, and consequently keeps the playing field level, so to speak, for all businesses in competition with each other.
Q: Why should I hire a business litigation lawyer?
A: You should take your business dispute seriously because its outcome could affect not only your financial status but also your future success. A reliable business litigation attorney can look out for your best interests and ensure that your dispute is resolved in your favor. Additionally, s/he can give you invaluable legal counsel on strategic and affordable courses of action. Whether your case is settled out of court or goes all the way to trial, you should have an attorney by your side every step of the way. This way, you will give yourself the best chance at a successful outcome.
To schedule a free consultation with one of our dedicated Irvine business litigation attorneys at McFarlin LLP, call us today at (888) 728-0044.