Business litigation is a legal process wherein litigants or the parties involved (in the lawsuit) try to settle their legal problems that have affected their commercial or business relationship. This legal dispute is resorted to when negotiation or arbitration between business firms and individuals, government entities or other businesses fail.
Business litigation is most often used to resolve any of the following issues:
- Breach of Fiduciary Duty. Fiduciary duty refers to the highest standard of care. A fiduciary, or a person to whom another person’s money or assets are entrusted can be a manager of a pension plan or a group of persons, such as people who make up a corporate trust or trust department of a firm. A fiduciary holds an ethical or legal relationship of trust with another party; he/she is also expected, at all times, to act in ways that will promote the interests of those whose trust he/she has.
- Insurance disputes. This is due to deceptive tactics employed by insurance firms to save themselves from paying legitimate claims. By using deceptive or confusing wordings in insurance contracts, insurance providers use this to undervalue a fair claim or deny, altogether, a legitimate claim made, especially, by small businesses.
Finances and Investments. Finances and financial investments are a major concern to investors; Thus, investment brokers, who cause their clients financial losses by failing to promote the latters’ interests can be suspected of being unethical or neglectful in their duty. This can be ground for clients to bring business litigation against brokers. In like manner, brokers may also end up facing business litigation if they fail to fully disclose investment information to their clients (this may be considered as deception or investor fraud).
The outcome of a commercial litigation can have a significant effect on your business; thus, it requires a steady guiding hand in order to be conducted successfully. The assistance of a qualified legal counsel in this matter can be essential.Learn More