Litigator vs. Transactional Lawyer: Which Do You Need?

Litigators and transactional lawyers represent two broad categories of legal practice. Litigators handle legal disputes, representing parties in lawsuits and court proceedings. Transactional lawyers focus more on advising clients in drafting legal documents and negotiating deals, while ensuring compliance and avoiding lawsuits.

Knowing the difference between litigators and transactional lawyers helps you find the right legal professional for your needs while saving time and money. Visit the Super Lawyers directory to find a local attorney who practices business and corporate law.

What’s the Difference Between Litigation and Transactional Work?

The biggest difference between litigation and transactional lawyers is that litigators help resolve disputes between parties that are breaking apart, while transactional lawyers help bring parties together.

Transactional work involves building. It can involve everything from merger contracts to closing documents for property purchases. Litigators, on the other hand, work in conflict and resolve disputes between parties.

Both roles are essential, but litigation lawyers and transactional lawyers come into play during different situations throughout a company’s existence. Business and corporate law professionals should be a part of your team as your business grows.

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What Does a Transactional Lawyer Do?

Transactional law involves researching, preparing, and reviewing documents to help companies achieve their goals. This type of legal practice rarely involves appearing in court or arguing motions.

Common tasks for transactional lawyers include:

• Business formation. Helping companies determine which business entity to select and then drafting the corporate documents for the selected business structure, such as an LLC, partnership, or corporation.
• Contract review and drafting. Reviewing vendor contracts, client agreements, and service terms to flag any issues that need to be addressed. Drafting contracts needed by your business.
• Leases. Reviewing commercial leases to ensure the terms contain clauses that are fair and reasonable.
• Employment agreements. Drafting offer letters, non-compete clauses, and employee handbooks to ensure they comply with the law.
• Deal structuring. Providing advice and guidance if you need to acquire or sell a business.
• Risk prevention. Helping companies identify compliance issues or spot legal pitfalls before they occur.

A transactional lawyer’s job is to be proactive. They must provide clarity and ensure every agreement can withstand any challenges. Good transactional work on the front end can save you from future litigation.

What Does a Litigator Do?

A litigator’s work resembles what one often sees lawyers doing in movies. They argue cases and resolve disputes. While litigators are often thought to spend their time in the courtroom, the majority of their work occurs outside it.

Common litigation tasks include:

• Guiding lawsuits. Representing you when you sue someone or if someone sues you.
• Drafting demand letters. Sending a formal letter to a party with whom you have a dispute.
• Conducting settlement negotiations. Working out a deal to end the dispute without a trial at terms the parties agree on, which saves time and money.
• Settling disputes with vendors, customers, or partners. Stepping in when disagreements cannot be resolved without legal counsel’s intervention.
• Defending claims. Protecting your interests against accusations like a breached contract, unpaid debts, or employment complaints.

Litigators spend their time involved in adversarial situations. They build cases by conducting legal research, appearing in court, gathering evidence, investigating the facts, and analyzing the case’s merits based on the law and the facts. They seek to resolve the matter in court or through negotiations for a potential settlement.

Do Some Lawyers Do Both Litigation and Transactional Work?

While some lawyers in smaller firms may handle both transactional and litigation work, most lawyers, especially in larger firms, concentrate their practice on one or the other. The two areas of law require different skill sets, even though there is some overlap.

For complex matters, specialists often deliver stronger results. For example, a contract specialist may catch mistakes a generalist may miss. Likewise, a seasoned litigator will know the courts and the judges’ practices, which can serve you well. When the stakes are high, it’s worth hiring a specialist.

When Would a Small Business Need a Transactional Lawyer?

If you are building and growing a business, you’ll want a transactional attorney for certain situations. Here are a few examples of when a small business would need a transactional lawyer:

• You need help determining which type of business entity to select
• A potential landlord presents you with a 10-page lease, and you’re not sure what you would be agreeing to in the document
• You’re hiring your first executive-level employees, and you need solid employment agreements
• A supplier sends you a vendor agreement with unfamiliar terms
• You’re bringing on a business partner and want to ensure your ownership agreement addresses all issues that could lead to disputes

In each case, the business would benefit from legal counsel. A small investment in legally sound paperwork and sound counsel could prevent a costly fight later.

When Would a Small Business Need a Litigator?

If you’re involved in a business conflict or if one seems likely, you’ll need a litigator to help your business resolve the dispute and get back on track. Consider the following situations:

• A client owes you thousands of dollars and keeps ignoring your invoices
• A former employee files a complaint claiming wrongful termination
• A vendor delivered defective goods and refuses to refund the business or provide conforming goods
• You receive a lawsuit notice and have only a short window to respond
• A competitor accuses you of breaking a contract

When you’re involved in a conflict, time is of the essence. Lawsuits and demand letters often come with strict deadlines. Waiting until the last minute or ignoring them can be costly. A seasoned litigator will respond strategically and protect your business.

Protect Your Business: Consult with a Lawyer

To determine which type of attorney you need, ask yourself whether you are trying to prevent a problem or if you’re dealing with one now. If you need help from an attorney, visit the Super Lawyers directory to find a lawyer who practices business and corporate law.