What Are the Common Types of Disputes That Tend to Necessitate Business Litigation?

Despite the best efforts and intentions to maintain working relationships with stakeholders through well-crafted business contracts, businesses often experience disputes. When such happens, money and reputation are often on the line.

While some disputes can be resolved informally or through alternative dispute resolution methods, most others often require the intervention of skilled Bloomfield Hills business lawyers. At this point, the most suitable approach is business litigation. Common types of disputes that lead to litigation are:

Breach of Contracts

Business contracts lay the foundation of every transaction and partnership. Commercial disputes often arise because one party fails to meet its part of the bargain as outlined in the contract. For example, a business may fail to pay for goods or services it receives because it is dissatisfied with the quality or no longer has the financial muscle to meet the obligation.

In evaluating whether a contract has been breached, business litigation attorneys in Bloomfield Hills will analyze the following factors:

  • Was there a contract between the two parties?
  • What were the terms and requirements of the contract?
  • Did the contract have any modifications?
  • Is the contract legally binding and enforceable?
  • Are any damages due to the wronged party?

In Michigan, a business has six years from the date the breach happened to file a breach of contract claim. Failure to act within the statute of limitations means the court will dismiss your claim.

Employment Disputes

Smooth business operations thrive in a harmonious work environment, and when it is lacking, it can create conflict that may require litigation. Bloomfield Hills business litigation lawyers explain that employment-related disputes can arise from discrimination claims, wage disputes, wrongful termination, or harassment claims.

Resolving these issues can be complex, mainly because most of them infringe on the rights of the parties involved. Skilled lawyers can intervene to deal with the conflict under the relevant statutes and jurisdiction for the most favorable outcome.

Breach of Fiduciary Duty

Some individuals have a fiduciary duty, the highest duty owed under the law. For example, a business director has a fiduciary duty to act in the business’s best interests. Failure to use their position for the company’s betterment could result in lawsuits if they abuse the position to enrich themselves at the expense of the enterprise.

Other examples of breach of fiduciary duty are:

  • Failing to disclose a conflict of interest
  • Not using adequate care in managing the business
  • Not disclosing pertinent information to other parties
  • Carelessly exposing the business to liability or exposing trade secrets to competitors

Intellectual Property Disputes

If your business owns intellectual property such as trademarks or patents, you must enforce measures to protect your IP from misuse by other parties. You can also take legal action if a party violates a non-compete or non-disclosure agreement or your trade secrets are disclosed to competitors.

Partnership or Shareholder Disputes

If your business is co-owned, disputes may arise between you and your partners, which is a common occurrence. Business litigation may be the way to go if you can’t resolve the disagreements through mediation or outside the court. Disputes requiring litigation are common where a co-owner is accused of misbehaving or failing to protect the business interests.

These disputes are often intricate, requiring the expertise of experienced Bloomfield Hills business litigation attorneys. They can evaluate your contracts and determine if you have a strong case. They can also review if there are loopholes that may weaken your case and advise on the best way forward.

Business Termination and Dissolution

When a business is no longer successful or has served its term, it may be time to terminate it. Depending on the intricacies of its framework or contracts, dissolving the business can be complex, requiring the involvement of skilled business litigation lawyers in Bloomfield Hills.

They can ensure compliance with relevant laws and regulations while protecting your legal rights during the termination.

Insurance Issues

Businesses sometimes face insurance coverage challenges with their insurance providers when they submit a claim that the insurance company denies. The most suitable way to resolve such conflicts is often through declaratory actions, where the policyholder files a lawsuit in court. The judge reviews the policy to determine coverage and resolve the matter.

What is the Role of a Lawyer in Business Litigation?

Business litigation is serious and complex as it can potentially bankrupt a business or open the door for potential criminal charges. Since litigation requires court appearances, engaging the quality services of experienced business litigation attorneys in Bloomfield Hills is crucial.

They can fight to protect your business interests and reputation by ensuring the dispute is handled correctly. Skilled lawyers can help you create a strong case if you need to sue another party or defend your business if it has been sued over a business dispute. They can represent you in court so that you can focus on building your business and protecting it from the risk of collapsing.

A Skilled Business Lawyer Helping You Resolve Business Disputes Through Litigation

Sometimes, business disputes are inevitable, and when they arise, the most appropriate way to resolve them may be through litigation after other methods fail. Skilled business litigation attorneys in Bloomfield Hills can provide legal assistance when you file a lawsuit to protect your business interests and rights. They can facilitate timely and effective resolution

Kendal Law Group, PC, has a dedicated team of business lawyers who can help you resolve business disputes through business litigation.

Don’t let a legal dispute put your business on the line. Let us help you protect your business interests, whether you need to draft an agreement, review an existing one, or enforce one. Call us at 248-609-1718 to schedule a FREE in-depth strategy session.