Businesses are involved in any number of things that can lead to any number of disputes within a business and between businesses. You can proactively work to minimize and avoid many common disputes but thorough planning is not always enough to evade disputes altogether. When a business dispute in California arises and is not adequately addressed, it can seriously impact a business' stability, reputation, and bottom line. You want to address the harm done to your business so you can prevent further damages and recover monetary losses or other relief. You also want to defend against claims that could result in monetary judgments against the business and result in other costly penalties.
Dispute resolution is immediately necessary so that businesses on either side of the dispute can avoid additional harm. At Eric D. Anderson Law, our business law lawyer in San Bernardino County will be an integral part of the process to assert your rights and protect your interests and assets. Contact us today at 909.283.5494 to schedule a Free Consultation and learn more about effectively preventing business disputes and adequately addressing any that may arise.
Business Litigation in California
Business litigation, or commercial litigation, is any legal proceeding arising from a dispute between organizations or other parties over commercial transactions in California. The term also typically encompasses negotiation and dispute resolution processes before a matter goes to court.
Disputes at the center of business litigation can be both internal to the organization (e.g., a dispute with an employee or between partners) or with external parties (e.g., a dispute with a vendor or client).
Business litigation often involves complex issues and can be time-consuming and expensive to handle. Business litigation attorneys are retained to advise on issues that arise in the course of operating in a business and to represent parties if a dispute arises.
Common Types of Business Disputes in California
Business disputes can involve anything from breach of contract to disputes arising from mergers or infringement of trade secrets. Below are some of the more common types of disputes that most businesses encounter at some point.
Breach of Contract
A breach of contract is a business dispute that arises when a contracting party fails to do something under a contract or breaches the terms of the contract. Contracts are a common feature of any business operation and, as such, breaches of contract are also common. They can involve consulting contracts, contracts for goods and services, and partnership agreements.
Partnership disputes often arise where partners disagree on what's best for the business or how to proceed in relation to a specific issue, like splitting profits. They can also involve a breach of fiduciary duty where one party acts against the interests of the other in breach of a partnership agreement.
Intellectual property law protects creators' rights in their original work. Business disputes can arise over who owns the intellectual property in a particular work or alleged copyright, patent, or trademark infringements.
Employment law disputes involve both internal conflicts such as harassment, discrimination, and wage disputes as well as conflicts with former employees, such as unfair dismissal or breaches of non-compete agreements.
How Are Business Disputes in California Prevented?
There are several ways to help minimize the risk of becoming involved in a business dispute.
Draft Effective Contracts
One of the best ways to head off any future disputes is to ensure you have effective, legally-binding contracts in place. A business dispute lawyer can draft carefully written, clear, and specific contracts for your business.
Seek Advice Early
If you are unsure about how to approach a complex issue or have a gut feeling that something is wrong, seek advice from a business attorney immediately. Obtaining legal advice early on how best to proceed helps you avoid a business dispute.
It is best practice for a business to keep a written record of important documents or events in case a dispute later arises. This includes retaining copies of all emails, contracts, accounting information, loan documents, file notes, and meeting minutes. A business litigation attorney can assist you with developing a good document retention strategy and system.
How Are Business Disputes in California Resolved?
Before going to court, the parties may attempt to resolve an issue via alternative dispute resolution (e.g., negotiation, mediation, or arbitration). This can save the parties significant amounts of time and money.
During a negotiation, the parties discuss the matter to try and resolve it amicably. While negotiation is a more informal process, business dispute lawyers will often be involved because they have skills that allow them to effectively navigate the process.
Negotiation is the most cost-effective way to resolve a dispute. Negotiation avoids more formal processes that require the involvement of external parties.
In a mediation, the parties discuss the matter with an independent mediator to try and find a mutually agreeable solution to the issue. The process results in a mediation agreement, which the parties must follow.
During the arbitration, an arbitrator (or panel of arbitrators) hears each party's case and decides the matter.
The contract often determines if arbitration is available to the parties in their specific situation. If there is an arbitration clause, the parties may be barred from going to court.
As a last resort, if parties are unable to otherwise resolve their dispute, they may proceed to formal litigation in court. This involves one party filing a civil complaint against the other and the matter is eventually heard before a judge and jury who then give their verdict.
Litigation can be drawn out, costing the parties significant amounts of time and money. The parties are typically represented by their respective business dispute attorneys.
Contact a Business Dispute Lawyer in San Bernardino County Today
Litigation is not the only method of resolving a business dispute, and besides, as mentioned above, it is the most time-consuming and costly method. Many parties to a business dispute are able to negotiate and compromise via a settlement process. Sometimes, it may go to arbitration. At Eric D. Anderson Law, our business litigation attorney represents clients who want smart, resourceful solutions to business disputes. Contact us today either by filling out the online form or calling us at 909.283.5494 to schedule a Free Consultation.