Types of Business Lawsuits

Many kinds of lawsuits involve businesses and business activities. Business owners may be sued as defendants or sue others as plaintiffs. While business owners can take proactive steps to protect their businesses from lawsuits, such as having a lawyer draft sound contracts or implement policies and procedures that comply with federal and state laws, lawsuits may be unavoidable in some instances.  

At other times, a business owner may have no choice but to bring a lawsuit to protect their business interests or to recover financially. Regardless of which side a business owner is on in a dispute, it’s essential to understand the type of lawsuit being brought. This article will cover some of the most common types of business lawsuits and help point to further legal help. It’s always good to speak with a lawyer about your case to ensure the best outcome for your business’s interests. 

What Are the Most Common Types of Lawsuits?  

Business law is complex, and many kinds of business disputes could arise. “The most common [business lawsuit] is probably contract disputes, when companies that have contracts with each other end up in a dispute over them,” says Georgia business litigation attorney Benjamin I. Fink. “There are also statutory disputes, such as trade secret disputes [involving intellectual property laws]. Many other state and federal statutes apply to business relationships and could come into play.” 

Examples of other relevant statutes are employment laws, such as the federal Fair Labor Standards Act, which governs various wage and hour issues, and state workers’ compensation laws. “Then there’s also common law torts,” says Fink, “like tortious interference with business relations,” when a third party illegally interferes with a company’s current or future business relationships. 

A list of common types of business litigation includes: 

• Breach of contract 
• Intellectual property disputes involving trade secrets and patents 
• Breach of fiduciary duty 
• Personal injury claims, including premises liability claims for injuries to customers on business property and product liability for defective products (sometimes as a class action lawsuit)  
• Employment disputes, including wrongful termination and workplace harassment 

Protect Your Business’s Future When Facing Litigation

Whatever the dispute, if your business is involved in litigation, use the Super Lawyers directory to find the top business litigation attorneys near you.

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Who Can Bring a Business Lawsuit?

Various parties can bring business lawsuits, depending on the legal issue. For example: 

• Shareholders might bring a breach of fiduciary duty lawsuit against board members who have engaged in self-dealing or other practices 
• Breach of contract lawsuits are typically brought by one company against another 
• Customers or users of a product bring personal injury claims 

Regardless of the type of lawsuit or which side a business is on (suing or being sued), “The earlier you get a lawyer involved in any potential or festering dispute, the more likely you are to get advice on how to handle it,” says Fink. 

What Is the Difference Between Commercial Litigation and Civil Litigation? 

As a business owner, you may have heard the terms “civil litigation” and “commercial litigation” and wondered how these types of litigation are different. Commercial litigation is a type or subset of civil litigation. 

In general, civil litigation is a lawsuit between parties involving money or seeking a court’s enforcement of some legal right. The “parties” involved in civil litigation may be individuals, companies, or other entities. Commercial litigation is simply civil litigation that involves companies.  

Civil or commercial litigation is separate from criminal law, though civil and criminal cases can sometimes be brought for the same underlying actions. For example, if an employee has suffered sexual harassment from a coworker or supervisor, they can bring a civil anti-discrimination lawsuit against their employer, but if the sexual harassment involved sexual assault, the employee could also bring separate criminal charges against the coworker or supervisor.  

Do Businesses Have an Alternative to Litigation? 

Yes. Instead of going to court, businesses may use alternative dispute resolution (ADR) to settle their legal disputes. There are different kinds of ADR. The most common types for businesses are: 

• Arbitration: Businesses in dispute agree on a neutral third party to hear the facts of their argument and then issue a binding decision. Arbitration is similar to a traditional court hearing in that both sides present evidence to a third party who makes a decision which the parties must follow. Arbitration can save time and money for the parties since they don’t have to go through the courts. 
• Mediation: Like arbitration in it involves the disputants and a third party. However, in mediation, the third party helps the disputants reach a decision on their own, rather than deciding for the parties. 

Even though ADR is an alternative to the traditional litigation process, it’s still wise to have a lawyer assess and represent your case. There are still complex legal issues involved, and the outcome of ADR will have significant consequences for your business, just like traditional litigation. Having a legal expert on your side will ensure the best outcomes for your business. 

Finding a Business Attorney 

If you’re a business owner facing any kind of legal action, consider getting advice from a business lawyer as soon as possible. To get the most out of a consultation, ask informed questions such as: 

• What are your attorney’s fees and billing options? 
• How can I protect my business from a lawsuit? 
• What timeframe and costs can I expect in the litigation process? 
• Is alternative dispute resolution preferable to a lawsuit in my case?

Look for a business litigation attorney in the Super Lawyers directory to find the right lawyer for your business-related legal issues.