Most Common Causes of Business Litigation

Business litigation is something every business has to deal with at one point or the other. This is why in addition to in-house lawyers, large companies have external lawyers to help them with their litigation.

Even if you do not have in-house house lawyers, you should have external lawyers that you trust to handle your litigation because whether you like it or not, you will encounter business litigation. It is just one of the costs of doing business.

However, you can minimize the extent of your troubles if you know their major cause and can take steps to prevent them from happening in the first place.

So, here are four common causes.

Business Litigation From Breach Of Contract

Businesses operate with contracts. In fact, you can regard contracts as the lifeblood of all businesses. Breach of contract happens when the party you are doing business with fails to stick to its end of the bargain.

In the end, you will have to engage in litigation to either enforce the contract or protect yourself from allegations of breach of contract.

You can prevent this from happening by making sure the terms of the contract are clear and concise. With a good lawyer, you will be able to get a good contract with terms that are clear to the parties and prevent future disputes.

Business Litigation From Employment Discrimination

Employment discrimination is something many businesses do not want to be involved with. Sadly, the workplace is still rife with discrimination based on race, sex, religion, and so on.

Workers who have suffered employment discrimination in your business are likely to sue you for the discrimination they suffered.

You can prevent this business discrimination from ever occurring by having a well-planned process and keeping adequate documentation of employee complaints.

Business Litigation From Intellectual Property Infringement

Your business’ intellectual property is a very dear asset, and you should prevent other people from infringing it. One way to prevent infringement is to sue the person or business that infringed on your intellectual property.

You might not have to go through the rigors of business litigation if you can get your lawyer to write a cease and desist letter to warn the infringing party.

Business Litigation From Negligence Torts

This is another major cause of business litigation. These are actions done by your employees or your business, and they result in injury to another person. The people who suffer these injuries can institute business litigation against your business.

Handling business litigation is not a walk in the park. You need a strong team of lawyers to make sure you win business litigation instituted by or brought against you.