“Business litigation” and “commercial litigation” are often used interchangeably. They are both types of civil litigation involving businesses, and business litigation lawyers may handle issues in both areas.
Despite the similarity, there are some differences between them. In general, business litigation involves legal issues that are more internal to the business and its operations.
- Breach of contract. When two parties have a contract with one another, and one of the parties fails to perform their part of the deal, that party is in breach of the contract.
- Breach of fiduciary duty. A fiduciary duty is when a person has an obligation to act in the best interests of another person.
- Partnership disputes. If the individuals who started or run a business disagree about how to operate the company going forward, this can lead to legal issues.
- Intellectual property disputes. Companies can have many types of intellectual property rights. For example, a company’s trade secrets are information the company protects because it gives the company an economic advantage.
- Non-compete and unfair competition issues. Non-compete agreements are a type of contract between an employer and employee. They aim to prevent employees from taking confidential information or training from the employer and using it against them as a competitor.
- Fraud. Fraud is intentionally misrepresenting or withholding facts from another party to get an unfair benefit. Fraud can arise in many business-related contexts, including the sale of goods and business transactions.
- Business torts. A business tort is a wrongful action that someone takes against a business that causes the business financial harm. A major business tort is called tortious interference. This is when a third party intentionally interferes with a company’s current or prospective contracts or business relationships to cause the company economic harm.
- Employment law issues. Employment issues can include anything from wage and hour disputes to wrongful termination to discrimination claims.
- Insurance coverage issues. If a business and insurance company dispute the range of coverage, or one party claims there is a breach or insurance fraud, litigation may be involved.