Being involved in commercial litigation can be very daunting, especially if you don’t understand the process or have the right resources.
Commercial litigation is an extensive area of practice and attorneys working in this area have devoted themselves to these types of legal proceedings.
The guide below will help you better understand what commercial litigation entails, and also help you prepare for such matters.
What is Commercial Litigation?
Let’s begin with Civil Litigation
Civil litigation is a lawsuit between two individuals (who may involve law firms to represent them), where there are no criminal charges involved.
Parties are often suing to defend a legal right and seeking money damages or a specific action.
Commercial litigation versus civil litigation
A civil dispute becomes commercial when one or more of the parties is a business entity.
Commercial and civil procedure rules are mostly similar.
The Plaintiff (person seeking damages) will retain an attorney, both parties will conduct investigations into applicable law, dispute resolution negotiations will be undertaken, the Plaintiff’s attorney will file a lawsuit if no settlement is reached, and eventually, the case will end up before a judge or jury.
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Examples of Commercial Litigation
Below is a non-exhaustive list of commercial litigation.
- Antitrust Cases
- Aviation Disputes
- Bad Faith Cases
- Breach of Contract Actions
- Breach of Duty Cases
- Business Torts
- Class Action Lawsuits
- Construction Cases
- Debtor or Creditor Actions
- Derivative Actions
- Employment Cases
- Fraud Actions
- Insurance Coverage Cases
How is Commercial Litigation Different from Other Types of Litigation?
The biggest difference between commercial disputes and other types of litigation is about who is involved in the litigation.
Once a business becomes involved, the issues are more complex than traditional civil claims. Many commercial cases are filed in federal courts and not states, as are some other class-action lawsuits.
Litigation costs differ between different litigation types, with commercial litigation cases being more expensive. This is because the use of forensic experts is more expensive.
Civil and Commercial Litigation
Most commercial cases will fall under the civil litigation process, because of the type of claims that arise between businesses and individuals. Sometimes business litigation cases may result in criminal charges, but it is mostly civil litigation matters.
Some examples of common types of commercial litigation include:
Antitrust Litigation: This litigation type can be criminal or civil and deals with allegations that a company does not comply with regulations.
Breach of Contract: When a company or client fails to uphold a legal contract, then the case may result in court proceedings.
Consumer Class Action Lawsuits: Class action lawsuits are when multiple individuals bring a group lawsuit against someone who has aggrieved them.
Corporate and Commercial Litigation: That is when an individual brings legal disputes against a company.
Intellectual Property Litigation: IP litigation involves patent, trademark or copyright infringement.
Regulation Issues: When a company does not comply with regulations, civil and criminal sanctions may be a result.
Securities Litigation: This type of litigation involves disputes between issuers of securities and the individuals who invest in them.
Is today’s market impacting commercial litigation?
The commercial litigation environment is constantly changing due to changes in politics, administrations, the economy, and regulations. As the market and technology adapt and change, so too does commercial and other civil litigation adapt.
Even as the commercial industry and commercial entities change and evolve, there will always be a need for commercial litigation.
Specifically, high-tech companies are starting to dominate court litigation proceedings, either by commencing proceedings or by being taken to court by individuals.
I’m involved in a commercial dispute, now what?
Unfortunately, there are no simple commercial disputes.
If you are faced with such a dispute, seek out a civil litigation lawyer in Toronto, Ontario, Canada or business solicitor, prepare witness statements, and try to settle the issue outside of court.