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Has your business hit a dead end in negotiations? When attempts to compromise fail, it might be time to consider litigation. Here’s what you need to know about pursuing litigation to resolve business disputes after negotiations stall.

What Is Business Litigation?

Business litigation involves legal disputes related to business operations. These disputes often arise from disagreements over contract terms, partnerships, or commercial transactions. When parties cannot settle these issues through negotiation, business litigation aims to resolve them in court. Small and large businesses alike must sometimes engage in litigation to protect their rights, enforce agreements, or recover losses. Litigation is a complex process, one best pursued with the guidance of an experienced business law attorney.

Common Disputes That Lead to Litigation

Businesses are inherently in competition with one another, which inevitably leads to disputes over any number of issues. Here are some examples of common ones that can lead to litigation:

  • Breach of Contract: A breach of contract occurs when one party fails to fulfill their part of an agreement according to a contract’s terms. For example, if a supplier does not deliver goods on the agreed date, a buyer might sue for losses resulting from the delay.
  • Partnership Disputes: Sometimes, business partners disagree on how to run the business or divide profits. Such disagreements can deteriorate into disputes requiring court intervention to resolve issues like asset division or contract interpretations.
  • Intellectual Property Infringement: Businesses frequently litigate to protect their creative works or inventions. If another company uses patented technology without permission, the patent holder can sue them to stop the infringement and possibly receive compensation for the unauthorized use.
  • Employment Disputes: Common employment issues include wrongful termination, discrimination, and wage disputes. Employees might sue if they believe their employers have mistreated them or violated labor laws.
  • Real Estate Disputes: These disputes can involve disagreements over lease terms, property boundaries, or zoning compliance. When a tenant and a landlord have a conflict over real estate matters, a legal ruling might be necessary to sort it out.

Signs Your Business Negotiations Might Be Failing

By knowing when negotiations are reaching an impasse, you can also recognize when it’s time to get an attorney involved. Here are some clear indicators your business negotiations might be headed for litigation:

  • Lack of Communication: Infrequent or non-existent responses suggest a breakdown in negotiations.
  • Revisiting Settled Issues: Repeated questioning of decisions that have already been settled shows a lack of commitment to the agreed terms.
  • Escalating Demands: If one side starts asking for more than what was initially on the table, negotiations will likely stall.
  • Missed Deadlines: A consistent failure to meet agreed timelines could indicate that the negotiation is not a priority to the other party.
  • Refusal to Compromise: If either party refuses to adjust their demands or consider alternatives, it might be impossible to find a middle ground through negotiation.

How a Business Litigation Attorney Can Help

Having an experienced lawyer on your side can make all the difference if your business negotiations fail. A business litigation attorney can help you by:

  • Reviewing all contractual documents to ensure they protect your interests
  • Identifying the most effective legal arguments to support your case
  • Filing lawsuits on your behalf to formally initiate the litigation process
  • Managing all communication with the opposing party to maintain professionalism
  • Gathering evidence to strengthen your position in court
  • Interviewing witnesses who can provide relevant information
  • Presenting your case clearly and effectively in court
  • Enforcing any court judgments in your favor
  • Appealing the case if the initial outcome is unfavorable
  • Planning strategies for any future litigation or negotiations

Contact a Business Litigation Lawyer Now

Ready to take the next step in protecting your business? Contact Levy Goldenberg LLP today for an initial consultation. Our business litigation team is here to discuss your situation, outline your legal options, and help you determine a path forward.