6 Common Types of Business Disputes that May Result in Civil Litigation

Commercial litigation can be complicated, but also extremely important for a business. They must always be taken extremely seriously, as a poor result in a dispute can potentially force a business into bankruptcy and financial ruin under certain circumstances.

In order to help you avoid unnecessary legal action and be properly prepared should the need for civil litigation arise, we have outlined below six of the most common types of business disputes that can lead to litigation.

  1.    Supplier/material disputes

Inventory is crucial to some types of businesses, and getting what you paid for and on time is vital to your bottom line. When that doesn’t happen, a dispute can arise that can lead to civil litigation. If you received the wrong product or a late product, you may be able to recoup the lost profits that you would have gotten from a customer from the supplier that made the error.

  1.    Rental disputes

Businesses often rent their commercial property from other businesses or individuals. Location can be paramount for some businesses, so a rental dispute that forces a business to move can be detrimental. Rental disputes arise regarding payment, modifications to the building, maintenance, and other issues.

  1.    Partner/owner disputes

Unfortunately, there may be times when co-owners of a business cannot agree or can no longer run a business together because of conflict. In these situations, you may need to head to court to determine how to dissolve the business or how to resolve a specific dispute. These cases can be complicated and often result in contentious proceedings.

  1.    Disputes with clients or customers

In some situations, your customers may be unhappy with services you provided or a product you sold to them. This can result in litigation in some situations. Usually, the client or customer in this type of dispute is another business and the transaction was somewhat large. Litigation with individual customers for business disputes is comparatively rare.

  1.    Employment disputes

Business disputes that involve employees often deal with employment contract violations. If the business or the employee does not hold up their end of the contract, then litigation can result. The same type of disputes can occur between subcontractors and businesses as well. Other types of employee-related claims, such as discrimination or workers’ compensation fall outside of the realm of regular business dispute regulation.

  1.    Contracts with builders/construction companies

If you are building a new location for your business or adding on to your existing building, disputes may arise regarding construction. Delays and poor construction can harm your business. You may be able to recoup this type of financial harm through civil litigation.

Businesses face all kinds of various potential legal issues. It is a good idea to have an attorney you can trust “on call” to answer questions and deal with potential civil litigation. The attorneys at Clarke Griffin can help. Please do not hesitate to give us a call today!

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Written by Clarke Griffin