Trends in Commercial Litigation
As times change, the amount of commercial litigation cases increases when compared to others. It is not surprising that one of the current categories is data privacy and cybersecurity. An IBM security study revealed that the yearly, global costs from data breaches is $3.62 million, including legal and litigation expenses. These cases can also be more complex, since state laws that protect consumer data are often changing.
Securities class action suits is another area that has seen more commercial litigation. Past years have shown notable increases, which are tracked by the Securities Clearinghouse. Employment lawsuits also rank high and can be particularly lengthy and costly. The average dispute takes over nine months, with defense and settlement costs being around $125,000. Average judgments in these cases hover around $200,000.
Policies and Regulations
The Uniform Commercial Code (UCC) regulates all U.S. commercial transactions. This uniformly adopted state law applies to secured transactions, sales and leases of goods, investments, and negotiable instruments. Although it is valid in all 50 states, each is permitted to make modifications as they see fit.
Business law must adhere to specific federal laws as well. These govern environmental protections, investments, stocks, and workplace employment and safety laws. States can also add to these and pass additional commercial laws. An example would be requiring certain professions to obtain licenses to practice within the state.
Commercial Litigation Categories
Commercial litigation can involve a company versus another company, the company’s own employees and partners, or consumers. The following are common types of commercial litigation:
- Real estate disputes
- Fraud or deceptive business practices
- Antitrust and unfair trade
- Partnership or shareholder disputes
- Insurance disputes
- Contract disputes
- Products liability
- Fraud
- Breach of contract or fiduciary duty
- Class actions
- Professional liability
- Preliminary and permanent injunctions
- Patent or intellectual property infringement
- Tax disputes
- Disputes with government agencies
Other types of commercial litigation include employment, debtor/creditor, partnership and LLC disputes, patent infringement, shareholder disputes, and breach of privacy. Commercial litigation encompasses a broad range of categories.
Basic Steps
Once attorneys are retained, civil and commercial lawsuits proceed in a similar fashion:
- Investigation stage
- Research laws that apply
- Send demand letters
- Settlement negotiations
- File suit
- Discovery
- Motion practice
- Case is tried before a judge or jury
- File post-trial motions
A Risky Business
The monetary implications of commercial litigation can be significant. Smaller businesses can be wiped out if they lose a case. In larger, more complex cases, there may be more parties involved, longer and more complicated discovery processes, and even higher financial stakes. The possibility of commercial litigation is a reality for business owners, and like any other type of lawsuit, they can be expected or seemingly come from nowhere. Temperatures can flare, and owners can easily become overwhelmed by the complexities of the case.
Getting Help
After a business dispute arises, the parties involved may attempt to mediate or negotiate outside of court. When this does not work, litigation may be the only avenue for resolution. Choosing an attorney who specializes in commercial litigation is a sound option for business owners facing legal action from other parties. Every case is different, and an experienced commercial litigation attorney can determine the company’s objectives and guide them toward a successful outcome.
