Sometimes business disputes arise, and when they can’t be resolved through negotiation or arbitration proceedings, business litigation can be used as a way to remedy the situation. Whether it’s a private individual or a business entity that has a legal issue with another business entity, we will look at what is business litigation.
Many people are concerned about their finances and investments now, so anyone who suspects that his investment broker has not acted ethically may bring business litigation against brokers who do not act in the best interest of the clients. If an investor suffers excessive financial loss as a result of unethical behavior by a broker, the investor can pursue business litigation. In the same vein as unethical broker behavior, which usually involves a broker pushing inappropriate investments on clients or failing to fully disclose investment information, is investor fraud, which involves deception.
Another common instance that can result in an individual bringing business litigation against a business is in a dispute over intellectual property. Any infringement on a patent, trademark or copyright is grounds for business litigation.
Breach of fiduciary duty can cause a strain between business partners or shareholders in closely held corporations. If one member violates his obligation to operate in good faith and loyalty then other partners can recover with business litigation.
If commercial insurance companies undervalue or deny a fair claim then businesses, particularly small businesses, can recover the amount they are entitled to with business litigation. Insurance companies can sometimes attempt to avoid fully paying a legitimate claim, or even avoid paying it at all, by using confusing or deceptive wording in the contract. There are countless other areas in which a business may have a need for business litigation to resolve a dispute against another business.
When business disputes occur between a business and an individual or between two business entities, resolution without resorting to business litigation will always be preferable for everyone involved. In cases where that just isn’t possible, a good business litigation attorney can be invaluable in protecting your rights and your company’s business interests.
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