5 Types of Business Disputes and Commercial Litigation

Businesses do not operate in a vacuum, and occasionally, entrepreneurs face many disputes and litigation. Consequently, a business manager is responsible for a lot of work, from managing finances and staff to taking care of suppliers—all while ensuring to work within the law.

Business dispute and commercial litigation

Of course, it’s possible to secure your business against risks. However, new challenges emerge daily, and you may find yourself embroiled in disputes or lawsuits such as false advertisements, breach of contract,  personal injury claims, copyright infringements, etc. In any case, it’s worth retaining legal help on such matters. Veteran Chicago business lawyers,  King and Jones, have domain expertise that will aid the legal success of every business. Meanwhile, it is worthwhile to understand the nuances of commercial litigation.

What is a Business Dispute?

A business dispute is a disagreement or conflict between two or more parties (e.g., businesses, people, or organizations) over money, contracts, or other issues. Business disputes can arise for various reasons, including breach of contract terms, failure to meet deadlines, and unfulfilled promises.

Business disputes are usually resolved through negotiation or informal dispute resolution methods. However, if the parties cannot reach an agreement, they may pursue legal action to resolve the dispute.

Employment disputes

Employment disputes are formal disagreements between workers and their employers concerning their rights. Employees may take legal actions against their employer if they firmly believe the employer has breached their employment contract, including workplace discrimination, hostile working environment, unsafe working conditions, unfair termination, denial of benefits, etc. Data from the  US Equal Employment Opportunity Commission show that Illinois registered over 3000 discrimination cases in 2020.

Business dispute lawyers can help businesses embroiled in disputes with workers by explaining contracts, facilitating mediation, and representing their clients in court, if necessary. They can also help companies minimize the risk of increased employment disputes by reviewing the businesses’ employment policies and contracts, conducting workplace investigations, and training employees and managers.

Contract Disputes

Contractual disputes usually arise when an individual fails to comply with a contract’s terms or meet their obligations. In such cases, disputes over breach of contract may arise. Examples of contract disputes include disagreements over the quantity or quality of goods and services, delivery timing, pricing, or payment terms. In some cases, contract breaches are unintentional. However, there are also cases where a party knowingly neglects what’s stated in a contract.

An experienced business dispute attorney can help resolve contract disputes. Indeed, attorneys with qualifications and experience in commercial law can help parties involved in contract disputes by helping interpret a contract’s terms and conditions, assessing damages, and negotiating compensation. They can also represent you in court should you decide to file charges.

Partnership Disputes

Sometimes, parties operating a business together may get into disagreements. Of course, minor conflicts can be resolved quickly. But in other cases, partnership disputes involve complex issues such as breach of fiduciary, mismanagement of resources, inequitable workload distribution, and even a lack of a transparent chain of command.

Usually, lawyers and judges will advise feuding business partners to try mediation negotiation or arbitration first. But in heated disputes, litigation may be more helpful. Either way, attorneys can provide a wide range of support, including interpreting partnership agreements, evaluating damages, negotiating settlements, etc.

Intellectual Property Rights Disputes

Intellectual property rights disputes, aka IP infringement cases, involve the unlicensed use, mimic, or divulgence of an invention, product, or idea. IP laws can also apply to trade secrets such as formulas or customer lists. It could be other parties infringing on a business IP or a business infringing on other parties’ IP.

Either way, both cases could lead to litigation, cease and desist orders, and demands for compensation. It’s always best to try and resolve IP disputes amicably. A commercial litigation attorney can help mediate or arbitrate such cases. They can also help enforce and defend IP rights.

Securities Litigation

Securities litigation involves resolving disputes related to breaches of securities laws. These include claims of insider trading, misleading/false statements, violation of securities regulations, etc. Securities lawsuits are often high stakes, encompass sensitive issues, and can cause negative publicity and significant damage awards.

It’s always best to work with attorneys experienced in such cases. Securities litigation attorneys can conduct internal investigations and represent companies and individuals in SEC investigations. They also provide corporate advice regarding officer and director liability insurance issues.


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