Any legal action that applies to the rights, relations, and conduct of a business or commercial entity is know as commercial litigation. Despite it’s name, commercial litigation does not always involve going to trial. Litigation can be costly, especially for businesses, and in most cases the parties involved work towards settling disputes before going to trial. While commercial litigation covers a wide range of issues, here are some of the most common.
Breach of Contract Claims
A business contract creates certain legal obligations that the involved parties are required to fulfill. When one or more of the parties fails to live up to the terms of the contract, it is considered a breach of contract. This can mean not delivering on time or not preforming at all. Upon a contract breach, one or more of the parties may wish to have the terms of the contract be enforced or to be compensated financially.
When a business decides to shut down operation and close it’s doors, for whatever reason, legally dissolving the business lets creditors know that you can no longer incur business debts. If you were doing business as a limited liability company, dissolution is necessary so that you are no longer liable for business taxes.
Non Competition and Trade Secrets Claims
A non compete clause is entered upon the premise that upon resignation or termination, an employee might begin working for a competitor or start a business and use confidential information or trade secretes to create a competitive edge against their former employer. Such contracts typically restrict employees from entering into a similar trade.
Violations of Securities Law
When securities laws are violated, the SEC can levy significant penalties, including fines and lengthy jail sentences. The most common violations include missrepresentation, insider trading, and accounting fraud.