Commercial litigation refers to legal disputes between companies or between a business and an individual. These disputes can involve various issues, from breaches of contracts to property conflicts and employment-related matters. When businesses face legal challenges, they can significantly impact their operations, finances, and reputation. Understanding the most common types of commercial litigation cases can help business owners prepare for potential conflicts and seek the right legal guidance.

In this article, we’ll discuss the most frequent commercial litigation cases that businesses encounter and how New Jersey commercial litigation lawyers handle these challenges.

Breach of Contract

Breach of contract is one of the most prevalent types of commercial litigation cases. A contract is a legally binding agreement between two or more parties, and when one party fails to fulfill their obligations, it is considered a breach. Business contracts can cover a wide array of agreements, including vendor contracts, employment agreements, and partnership deals.

In these cases, the court examines the specific terms of the contract, the actions of the parties involved, and any defenses raised. A business may seek compensation for damages resulting from the breach, or the court might order the breaching party to fulfill their contractual obligations. For example, if a supplier fails to deliver products on time, the business can file a lawsuit to recover any financial losses caused by the delay. Breach of contract cases can be complex, and businesses should work with a legal team to understand their rights and pursue the best possible outcome.

Intellectual Property Disputes

Intellectual property (IP) is a valuable asset for many businesses, and when disputes arise over IP, commercial litigation can follow. Intellectual property includes patents, trademarks, copyrights, and trade secrets. When one party claims that their IP rights have been violated, whether through unauthorized use or theft, they may file a lawsuit against the infringing party.

For example, a company may sue another for trademark infringement if it believes its brand identity is being used without permission. Similarly, a business may face a patent infringement claim if its product is alleged to be similar to a patented invention owned by someone else. Given the complexity of intellectual property law, companies involved in such disputes often rely on commercial litigation experts who specialize in IP law to help protect their innovations and resolve conflicts efficiently.

Employment Disputes

Employment disputes are a common cause of commercial litigation, particularly in matters involving wrongful termination, discrimination, wage violations, and labor disputes. Businesses must comply with a variety of federal, state, and local laws that govern employment practices. If these laws are violated, employees may file lawsuits for damages.

For instance, an employee who believes they were unfairly terminated or discriminated against based on their race, gender, or other protected characteristic may seek legal recourse. Similarly, businesses might face wage and hour disputes if employees claim they were not paid the proper amount for overtime or were denied benefits. In cases of workplace misconduct or wrongful termination, companies may be required to defend themselves against these claims, which can be costly and damaging. Hiring skilled commercial litigation experts can help businesses navigate these legal challenges while ensuring they remain compliant with employment laws.

Antitrust and Competition Disputes

Antitrust and competition disputes are designed to prevent unfair business practices that harm consumers and other companies. These cases often involve allegations of monopolistic behavior, price-fixing, or unfair trade practices. Antitrust violations can occur when companies engage in anti-competitive activities that reduce competition or harm market fairness.

For example, businesses may accuse a competitor of engaging in price-fixing, where multiple companies agree to set prices at an artificially high level, thus limiting consumer choice. Alternatively, businesses may file claims if a dominant company uses its market power to push smaller competitors out of the market. Antitrust cases can be highly complex, often requiring the expertise of commercial litigation experts who understand the nuances of competition law and the regulations governing such matters.

Real Estate Disputes

Real estate disputes are another common source of commercial litigation, particularly for businesses involved in leasing or property transactions. These cases often arise from issues related to property agreements, breaches of lease terms, zoning conflicts, and property ownership disputes.

For instance, if a commercial tenant feels that their landlord has failed to fulfill their obligations (such as failing to maintain the property), they may pursue legal action. Real estate disputes can also occur when property developers face issues with contractors, zoning boards, or land use restrictions. Businesses may need to find the right estate litigation attorneys to resolve these matters, which often require a thorough understanding of property law, zoning ordinances, and contract terms.

Class Action Lawsuits

Class action lawsuits are a unique form of commercial litigation where a group of individuals or businesses collectively file a lawsuit against a company for a common issue. These lawsuits can arise from a wide variety of issues, including product defects, consumer protection violations, and securities fraud.

For example, if a business sells a product that is later found to be defective or harmful, multiple consumers may join together to file a class action lawsuit. Similarly, shareholders might bring a class action against a company for securities fraud if they believe the company misled them about its financial status. Class actions can result in significant financial settlements or judgments, and businesses facing such litigation must respond promptly to avoid prolonged damage to their reputation and finances.

Shareholder Disputes

Shareholder disputes can arise when there are conflicts between shareholders, business partners, or members of a limited liability company (LLC). These disputes often center around business operations, financial management, or the distribution of profits. In some cases, shareholders may file derivative actions, which are lawsuits brought on behalf of the company to address alleged mismanagement by directors or officers.

For example, a minority shareholder may sue the majority shareholders if they believe their interests are being disregarded or if the majority is making decisions that harm the company. Additionally, business partners or LLC members may find themselves in court if they disagree on the management of the business or the division of assets. In such cases, commercial litigation experts can help businesses navigate complex legal issues and work toward a fair resolution.

Product Liability and Consumer Protection

Businesses that manufacture, sell, or distribute products may face commercial litigation if their products are defective or harmful. Product liability cases can arise when a consumer is injured or suffers damages as a result of using a faulty product. These cases can involve a wide range of issues, from design defects to manufacturing errors and failure to warn consumers about potential risks.

Additionally, consumer protection laws ensure that businesses do not engage in deceptive or unfair practices. Businesses may face lawsuits if they are accused of false advertising, fraudulent sales tactics, or misrepresenting the quality or safety of their products. In such cases, commercial litigation experts can guide businesses through the legal process, helping to resolve disputes and protect their reputation.

How Commercial Litigation Experts Can Assist Your Business

When dealing with any type of commercial litigation, it is important to work with experts who understand the intricacies of business law. Commercial litigation experts can help businesses navigate the legal process, from defending against claims to seeking damages. If your company is facing a breach of contract dispute, an intellectual property issue, or any other commercial litigation matter, having experienced legal counsel is vital to protecting your interests and resolving conflicts efficiently.At Choi Law Firm, our team of commercial litigation experts is ready to assist you. We have a deep understanding of the legal and financial aspects of commercial disputes and will work diligently to ensure that your business is protected from potential risks. Our goal is to help you resolve your legal challenges swiftly and effectively, minimizing the impact on your business. Schedule a confidential consultation with us today.