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Understanding commercial litigation

The Cornell law school describes commercial law as a vast area of law that deals with business transactions and relationships. Understanding these laws helps entrepreneurs and businesses deal with any arising disputes. 

Commercial litigation, on the other hand, deals with all claims that fall within these laws. It involves every aspect within a company that can lead to disputes. These include formation, dissolution, class actions and partnerships. Today, we will take a comprehensive look at commercial litigation.

The basics

Commercial litigation is any lawsuit that falls under the federal or state business regulation and involves either one or multiple companies. Nearly any business lawsuit falls under commercial litigation. Some commercial lawsuits only deal with specific property or agreement, while others are generally broad.

With commercial litigation, there are no clear defendants or plaintiffs. Most of the time, both parties will have a set of claims and defenses. A few examples include the following:


Securities litigation — these are any fraud lawsuits against issuers of securities by investors.
Contract breaches — when a company fails to uphold any legal clause, civil proceedings can start.
IP litigation — deals with infringement of trademarks, copyright and patents.
Antitrust litigation — handles all allegations concerning a company’s business practices that aren’t compliant with competition regulations.
Consumer class actions — occurs when consumers take on an organization due to issues like mislabeling, defective products, fraud or privacy violations.  

How commercial litigation works

For starters, most commercial disputes do not make it into the courtroom. The parties usually hold pre-lawsuit discussions to try and resolve the issues. Through formal negotiations and business mediation, the involved parties can come up with a satisfactory settlement.

During pre-lawsuit discussions, these companies conduct investigations and gather evidence that supports their defense or claim. However, the dispute enters the pre-litigation stage when the parties decide to file the case.

Even filed lawsuits can be resolved before getting to the judge or jury. If the matter cannot be resolved, the case moves on to the trial stage. Whether the case is placed in front of a judge or jury will depend on the specific nature of the lawsuit. However, every company needs to have a strong defense or claim during the trial stage.

You can always re-enter settlement negotiations when it comes to commercial litigation. Many companies reach trial but decide to re-enter negotiations before any verdict gets rendered. If the court makes a decision, then the losing party can always appeal.

Hire a commercial litigation lawyer today

Although business negotiations and agreements often seem straightforward, having a commercial litigation attorney always comes in handy. When disputes arise, both parties usually carry some percentage of the blame. Hire an experienced lawyer today to help you handle this complex process.