No business wants to be embroiled in a lawsuit. The time, expense, and hassle of litigation can divert resources and focus away from a company’s growth and profitability. Nonetheless, understanding some of the most common disputes that open the door to a lawsuit can help a business prepare accordingly.
The good news is that business disputes do not have to end up in court, and there are ways to mitigate the risks of protracted litigation and all of the problems that go with it. Whether you have an active lawsuit or you are simply trying to minimize the risks of one, count on the experienced Manhattan counsel of Levy Goldenberg LLP.
Problems That Lead to Court
Time and again, business disputes that end up as lawsuits fall into one of several categories. They include:
- Breaches of contract: When parties don’t perform as expected under a contract, a lawsuit becomes highly likely. One party may seek damages or specific performance from the other, along with hefty attorney’s fees.
- Employment disputes: These can take the form of contract breaches, but are often related to labor and employment law issues. Wage and hour disputes, discrimination, and workplace harassment are some examples.
- Ownership disputes: The owners (e.g. partners) may not agree on how to run the business, and could seek to remove each other from the company. Breaches of fiduciary duty, such as self-dealing, are also common triggers of lawsuits among owners.
- Intellectual property disagreements: Owners and employees do not always agree on who owns the intellectual property rights of the company. There are also disputes when employees misappropriate intellectual assets or one company accuses another of infringement.
- Business torts: Defamation, tortious interference with a contract or business relationship, and trade restraint are examples of business torts. Another common tort is that of unfair competition, which can have serious legal implications for a company.
Litigation Versus Mediation
A Manhattan business dispute could very well end up in a lawsuit and a trial if the issues at stake are serious enough, the financial implications are large enough, and the relative positions of the parties are intractable enough. Although the lawyers representing the parties will undoubtedly negotiate and attempt to settle, this is never guaranteed. Successful litigation requires having an attorney who understands the rules of evidence, the rules of civil procedure, and how to effectively use discovery and expert witnesses.
But litigation is not a foregone conclusion, and even if a lawsuit is ultimately filed it may not lead to a trial. The parties to the dispute may submit the matter to business mediation and allow a neutral third-party mediator to help them successfully negotiate a potential settlement. As a party to the dispute, you can have legal counsel represent you during mediation to help you consider settlement options and decide whether to move forward with litigation.
Risk Mitigation For Your Manhattan Business
The best way to handle litigation is to never have to deal with it in the first place, and risk mitigation can help your New York business accomplish this. Our firm can review your existing operations and analyze potential litigation risks, providing detailed counsel as to how you can defuse disputes and settle lawsuits. For instance, if your business has never adopted a policies and procedures manual, this handbook could lessen the chances of a devastating employment lawsuit.
Dedicated Legal Counsel For All Types of Disputes
If you are facing a business lawsuit or you are concerned a dispute may be headed that way, it’s time to speak with Levy Goldenberg LLP. Let us review the circumstances of your legal issue and provide practical guidance for resolving it, including through litigation if necessary. Call or contact us today to get started.