For many entrepreneurs, owning a business is a dream come true. Being a business owner comes with several perks, such as being your own boss and controlling the company’s direction.
However, business owners face challenges too. These may include very long hours at work, unreliable employees, inconsistent income, and unforeseen costs. Additionally, business owners face legal battles, including lawsuits against their company or pursuing lawsuits against others to protect their company.
Most companies consult business litigation lawyers to resolve issues during such overwhelming times. These legal professionals help handle disputes related to commercial transactions, contracts, and other business matters. Here are six common reasons why people hire business litigation lawyers and what qualities to look for when choosing one.
1. Breach Of Contract Cases
One of the common reasons why people hire business litigation lawyers is to handle breach-of-contract cases. Contracts are the foundations of most business relationships, and when one party fails to fulfill their end of the agreement, they are said to have breached the contract.
Although parties can learn from the contract the steps to take if there is a breach of contract, most people hire litigation lawyers to seek legal advice and resolve the issue. These lawyers help review the contract and help non-breaching parties file a lawsuit against the breaching party.
Similarly, parties sued for breach of contract hire business litigation lawyers to help with their cases.
2. Insurance Coverage Disputes
Insurance coverage disputes often arise when the insured requests their provider to cover certain damage under the policy, only for the provider to deny the claim. These disputes can result from the insured breaching the contract or when there is a misunderstanding of the coverage.
In such cases, business owners often hire experienced litigation lawyers to handle the issues with the insurance companies efficiently. These professionals have expertise in insurance law and can help policyholders understand their rights and negotiate with insurance providers by providing substantial evidence to demonstrate that coverage should be provided under the policy.
3. Intellectual Property Infringement
Intellectual property (IP) is a valuable asset for a business that consists of trademarks, copyrights, patents, and trade secrets.
When unauthorized parties infringe on these rights, a business can face severe damage to its brand integrity and profits. Many business owners seek the help of business litigation lawyers to help enforce their intellectual property rights, file infringement lawsuits to protect their creations, and seek recompense.
4. Financial Fraud Cases
Financial fraud refers to deceptive business practices which occur during business transactions. These may include:
- Payroll fraud
- Bank fraud
- Fraudulent billing
- Credit card fraud
Financial fraud can wreck businesses, causing substantial losses and tarnishing their reputation. When a business is accused/ charged with fraud or is a fraud victim, owners often hire business litigation lawyers to defend them against the charge or represent them in court.
The lawyers can work to recover the fraud’s losses and seek appropriate legal solutions like civil and criminal charges. Additionally, business litigation lawyers can seek injunctions to prevent further monetary damage from occurring.
5. Partnership Or Shareholder Disputes
Partnerships and joint venture agreements can sometimes sour, leading to disputes among business owners and shareholders. These disputes can arise because of the following:
- Disagreements over decision-making
- Breach of fiduciary duties
- Profit sharing
- Alleged misconduct.
Business litigation lawyers can assist parties in resolving their disputes through mediation and negotiation so that everyone works together peacefully. When ADR methods cannot provide the required result, these lawyers can litigate the matter and bring the claim to settlement.
6. Business Torts Cases
Business torts are wrongful acts against business entities. Business tort claims may arise when negligent acts of a competitor, partner, or another company harm a company. Business torts can result in significant financial losses for a business, damaging a company’s reputation, competitive advantage, and market share.
Businesses that suffer financial harm or otherwise due to the wrongful acts of an individual or another business seek the help of business litigation lawyers to recover economic losses and lost business opportunities.
Qualities to Consider When Choosing a Business Litigation Lawyer
When selecting a business litigation lawyer, several essential factors should be considered. These include the following:
Specialization In Business Litigation
Look for a lawyer with expertise in business litigation and the law relevant to your case. Such a lawyer can offer great insights and better understand how to navigate the complexities involved successfully.
The Lawyer’s Fee Structure
Ensure that the lawyer’s costs align with your budget and expectations. Some business litigation lawyers offer contingency fee arrangements, meaning you will not owe them any fee unless they obtain a settlement or judgment in your favor.
Reputation And Track Record
Research the lawyer’s reputation and track record by reviewing past litigation case results. Ask the lawyer how many cases they have handled and how many were won. Additionally, online reviews, testimonials from past clients, and referrals from trusted sources can provide valuable insights into their competence and success rates.
Experience In Cases Like Yours
You should also ensure that the lawyer has experience handling similar cases. An experienced business litigation lawyer can develop robust strategies and tactics to win your case. Ask the lawyers you are considering hiring about their years of experience and the number of cases they have litigated successfully.
Effective Communication Skills
Effective communication between you and your lawyer is essential throughout the litigation process. You can gauge the lawyer’s communication skills by how they respond to your questions and concerns, provides explanations, and keeps you informed about the progress of your case.
Importance Of Hiring Business Litigation Lawyers For Common Legal Disputes
Hiring a business litigation lawyer is wise when confronted with a legal dispute. Whether it is breach-of-contract cases, insurance coverage disputes, intellectual property infringement, financial fraud cases, partnership or shareholder disputes, or business torts cases, these professionals can protect your rights as a business.
When looking for a business litigation lawyer, consider factors like specialization, cost, reputation, experience, and communication skills. This can help you find a skilled lawyer who can effectively advocate for your interests and help resolve your legal disputes.
