What Commercial Litigation Is and What You Need to Know About It

Commercial litigation is a broad term that encompasses any type of legal dispute that arises during the course of doing business. It can include everything from contract disputes and breach of warranty claims to employment disputes and IP infringement.

If you own a business, you should have a basic understanding of commercial litigation and the various types of disputes that can fall under its purview. This article will help you better prepare for a legal dispute if you ever face one.

Continue reading to learn more about commercial litigation and what you should know about it.

How is Commercial Litigation Different from Other Types of Litigation?

Unlike other disputes, commercial litigation is primarily focused on relations between business entities. Rather than individuals, such cases involve medium and large enterprises, corporations, etc. This feature lies at the core of other distinctions, such as:

• Higher prices.
• Higher complexity.
• Longer time to resolve the case.
• Larger and multi-versatile legal team.

When we talk about relations between companies, we are talking about larger funds, more complex relations, and a wider list of involved parties than, for instance, in civil cases. That is why more financial and human resources will be needed to resolve the dispute between the companies.

Winning a case may require a team of experts who are knowledgeable in different areas of the law. Commercial litigation often requires specialised knowledge in areas such as corporate law, contract law, securities law, antitrust law, tax law, bankruptcy law and intellectual property law. 

Commercial litigation disputes can take a variety of forms. As mentioned previously, this could include contract disputes, IP infringement, breach of warranty claims, and more. In such cases, the goal is to resolve disagreements between companies so that both parties can continue operating their businesses.

How to Respond to a Commercial Dispute

A commercial dispute can be a daunting and complex issue to tackle. When a dispute arises, it's important to understand the meaning of litigation in law and the various ways of resolving such disputes.

When it comes to commercial litigation, preparation is everything. This means you should have all of the necessary documents and evidence to back up your legal argument. For example, if you are involved in a contract dispute, you should keep copies of all contract-related documents. This includes the contract, any correspondence related to the dispute, and any witness testimony.

It is also critical to conduct as much research as possible on the legal issues surrounding your case. This includes researching any potential issues and reading up on relevant case law. This can help you be better prepared for any potential legal arguments brought against you. Finally, discuss your case with a solicitor to ensure that you are well-prepared for any upcoming court proceedings.

The nature of the dispute and the facts at hand can influence the outcome of a commercial litigation dispute. Many disputes can be resolved before trial. This could include both parties agreeing to settle the dispute or one party compensating the other. 

In the event that the settlement cannot be reached, the case may end up in court. The judge or jury presiding over the case will usually make a binding decision based on the evidence presented. Depending on the facts of the case, the outcome may include one or both parties paying damages, the termination of a contract or relationship, or other forms of relief.

What Are the Key Factors to Consider When Choosing a Commercial Litigation Solicitor?

When it comes to commercial litigation, you need an experienced solicitor on your side. When choosing a commercial litigation solicitor to represent you, there are several factors to consider.

• The first thing to remember is that the solicitor should be knowledgeable about the type of dispute you are dealing with. For example, if you are involved in a contract dispute, you will need the services of a contract law specialist. Similarly, if you are involved in an intellectual property infringement dispute, you will want a solicitor who has handled similar cases in the past.
• It is also critical that the commercial litigation solicitor you select has a good reputation in the legal community. This means that the solicitor should be well-regarded by their peers and be able to demonstrate that they have handled similar cases successfully in the past.
• Finally, it is critical that you feel at ease communicating with your solicitor. This is significant because the specialist you work with will be in charge of representing you in court and during negotiations. If your solicitor is fighting for your rights, you should be able to trust that they are looking out for your best interests.

Why Commercial Litigation Matters in The UK in 2023?

Commercial litigation is a crucial component of the legal system in the UK. It allows businesses to settle disputes, protect their rights and interests, and ensure that justice is served.

Commercial disputes will  remain common in the UK courts in 2023, as they will help companies protect their assets and investments while also ensuring that they can take advantage of opportunities presented by new technologies, among other things. Commercial litigation law will assist companies in navigating the complexities of modern business life while also protecting them from unfair practices. Businesses in the UK should pay attention to the subject to ensure that they are operating within the law and making informed decisions about their future.

Examples of Commercial Litigation Cases

Commercial litigation refers to the process of resolving disputes between businesses. These disputes can arise for a variety of reasons, including breach of contract, business torts, deceptive trade practices, intellectual property disputes, and employer-employee disputes.

As a business owner, it is important to be aware of the different types of commercial litigation. In this section, we will provide 5 examples of commercial litigation matters that deserve attention.

1. Breach of Contract

An agreement is breached when one party fails to perform their obligations. This can be in the form of non-performance, non-payment, not following agreed-upon timelines, or not complying with the terms of the contract.

If a breach of contract occurs, the other party will likely seek legal recourse. Business owners should ensure they understand the terms of the contract so that they are aware of any potential breaches that could take place.

In some cases, the breach of contract may be serious enough to warrant litigation. Courts may order monetary damages to be paid to the aggrieved party to cover losses or legal fees. A breach of contract can pose serious risks to a business, which is why it is crucial for owners to understand the risks and prepare accordingly. 

2. Business Torts

Business torts are civil wrongs committed by businesses. Examples of business torts include fraud, misrepresentation, interference with contractual rights, and misappropriation of trade secrets.

It is important for business owners to be prepared to defend their interests if a lawsuit is brought against them for these torts. Business torts can be especially damaging to small businesses, as they may not have the resources to take on such cases.

Court proceedings for business torts may be costly and time-consuming, and businesses may incur significant legal fees.

3. Deceptive Trade Practices

False advertising or unfair competition in the marketplace are examples of deceptive trade practices. Other examples include mislabeling products, misbranding, and false price claims.

Businesses that commit such violations may face legal action and be held liable for damages. Companies should avoid making false claims or misleading customers through their marketing and advertising campaigns to avoid legal action. Additionally, businesses must ensure that any price claims are accurate and not exaggerated in any way.

4. Intellectual Property Disputes

A dispute over intellectual property arises when an individual or organisation uses another person's intellectual property without their permission. Patent infringement, trademark infringement, copyright infringement, and misuse of trade secrets all fall under this category. In such cases, violators may face both civil and criminal penalties.

Companies that want to mitigate risks for themselves, should take precautions to protect their intellectual property — and as a business owner, you need to prioritise this task. 

Any content used by business must be properly licensed and attributed. Also, companies should register all of their trademarks, copyrights, and patents with the appropriate authorities. 

5. Employer-Employee Disputes

Disputes between employers and employees are common. They can occur for a variety of reasons, including breach of an employment agreement, wrongful termination, discrimination, and workplace harassment.

Companies may face both civil liability and criminal penalties for such disputes and should take steps to ensure that they comply with applicable laws and regulations. It is critical for company owners to understand their responsibilities to their staff members and to provide a safe, fair, and inclusive workplace. Additionally, businesses should have a clear set of written policies and procedures in place relating to employee discipline and termination.

Ensuring that employees are adequately protected can help businesses avoid costly and time-consuming employer-employee disputes.

The legal tech field has made substantial strides to simplify commercial disputes. Litigation management systems such as LIGA UNITED make it easy to manage every stage of litigation for your company. You can also check the court history of your competitors or partners to see if they have had conflicts in the past and what the outcome was.