There are many types of lawsuits, also called litigations. When a business is involved, it becomes corporate or commercial litigation.
Corporate Litigation is a different bet than most other types of lawsuit. Corporate litigation is not just about one business suing another. It also includes legal proceedings having anything to do with a firm or corporation, and include measures taken to avoid litigation as well as litigating and managing business disputes.
In general, corporate litigation involves a whole host of tort and contract issues. Legal problems a corporation may face over the course of its life, such as the following comes under the corporate or commercial litigation:
- Securing agreement on wage, work hours and anti-discrimination laws
- Protecting firms against illegal termination suits
- Ensuring compliance with fresh accounting and corporate governance laws
- Contesting or negotiating claims
- Maintaining corporate tax agreement
- Resolving labor disagreements with workforces as well as with employees and professionals
- Violation of contract issues, mostly with other companies, whether supporting or suing
- Tort matters, where a buyer or consumer sustains damage either from the product or the services offered
- Corporate land issues, premises liability to disputes with landlords or regulators
Top three Corporate Litigations
While the list mentioned above includes almost all kinds of corporate disputes, we will, therefore, discuss top three corporate lawsuit categories to give one a basic guideline for what constitutes reasons to suggest that litigation may be appropriate.
Deceptive or Fraud Practices:
- When a business adopts dishonest, or fraud means and has not been thoroughly honest in describing their service or products while managing the trade.
- Misuse of Intellectual Property and revealing trade secret to harm a business also comes under corporate litigations.
- Further, if the business information has flowed when it is believed valuable to competitors is also a violation of confidentiality, especially if the information given outside the company demeans the firm in any way.
- The Breach of Trust by somebody from inside the business composition when he/she leaks any sensitive information which may harm the business also comes under commercial litigation.
Employer and Employee Disputes:
- Conflicts that arise due to poor health, overtime or discrimination issues can bring firms legal battles.
- When an agreement limiting the competition is disrupted when an employee quits and goes to work for a competitor despite the signing of something that stated they would not do so may also lead to a court case.
- The Infringements of Securities Law is when there are fraudulent practices carried out during the sale of securities and stocks.
Violation of Contract:
- When a service, merchant, legislator of any business asset, or others refuse or fail to keep their part of the contract or deal and also break the contract that is drawn up on behalf of the company, then they perform breach of agreement or contract.
- Tortuous Interference is when a separate party tries to interfere to prevent a deal from being drawn up by a business and a second party.
Thus, Corporate Litigation includes any legal procedure having anything to do with a business or organization and can involve steps taken to avoid litigation as well as litigating and managing business disputes.