Understanding the Differences Between Business and Commercial Litigation
John Goodman

Understanding the Differences Between Business and Commercial Litigation

 

It's a common misconception in the legal world that “business” and “commercial” litigation are interchangeable terms. However, these two areas of law represent different aspects that can significantly impact businesses. Whether you are a business owner or a decision-maker, understanding the nuances of these types of litigation can help you navigate legal challenges more effectively.

 

What is Commercial Litigation?

 

Commercial litigation typically involves disputes between businesses, often centered around transactions and contracts. These conflicts generally occur externally between two or more companies.

  • Contract Breaches: Disputes arise when one party fails to fulfill their obligations as per the contract terms.
  • Intellectual Property Issues: Conflicts involving the protection and use of trademarks, copyrights, and patents.
  • Lease Disputes: Disagreements regarding the terms and conditions of commercial leases.

What is Business Litigation?

 

On the other hand, business litigation pertains to legal disputes that occur internally within a company. These issues often involve compliance with state and federal laws and can impact the organizational structure.

  • Employment Lawsuits: Cases involving wrongful termination, harassment, or discrimination claims.
  • Shareholder Disputes: Conflicts among shareholders regarding the direction and management of the company.
  • Workplace Safety Violations: Issues that arise from failing to adhere to safety regulations and standards.

Recognizing the differences between business and commercial litigation is crucial for making informed decisions about legal matters. Business owners must be aware of which type of litigation applies to their situation to avoid costly mistakes.

If you are facing legal disputes or uncertainties regarding internal or external business matters, it's advisable to consult with an experienced litigation attorney. To discuss your specific needs, please contact our law firm for a consultation.