How to Avoid Any Kind of Commercial Litigation by Jeremy Schulman
Commercial litigation is a broad term that encompasses any kind of legal disagreement between businesses. It can arise from breaches of contract, issues with product liability, or employment disputes, to name just a few. It can be time-consuming and expensive if your business is involved in commercial litigation. In some cases, it may even threaten your company’s very existence. Read on to find out.
How Does Commercial Litigation Work?
Commercial litigation usually starts with one party sending a demand letter to the other party. The demand letter will state the specific issue that the parties disagree about and will give the recipient an opportunity to resolve the issue without going to court. If the issue is not resolved, the parties will file a lawsuit.
Once the lawsuit has been filed, each party can present its case to the judge or jury. After hearing both sides, the judge or jury will make a decision about who is right and who is wrong. If the plaintiff wins, then he or she will be awarded damages. If the defendant wins, then no damages will be awarded.
How can you avoid commercial litigation?
● Understand Your Contracts
Jeremy Schulman describes one of the most common causes of commercial litigation as a breach of contract. A breach of contract occurs when one party to a contract fails to live up to its obligations under the agreement. To avoid this, it’s important that you carefully review any contract before you sign it. Make sure you understand all of the terms and conditions and are comfortable with them. If there is anything that you don’t understand, get clarification from the other party or have a lawyer review the contract before you agree to it.
● Know Your Rights and Responsibilities as an Employer
Employment disputes are another common source of commercial litigation. These disputes can arise from issues like wrongful termination, discrimination, or sexual harassment. As an employer, it’s important that you are aware of your rights and responsibilities under state and federal law. This will help you avoid any potential problems down the road. You should also have clear policies and procedures in place for dealing with employee complaints. If an employee does come to you with a complaint, make sure that you handle it appropriately and in a timely manner.
● Be Careful When Dealing With Customers
Customer complaints are another common cause of commercial litigation. To avoid this, it’s important that you treat your customers fairly and respectfully at all times. Make sure that you deliver on your promises and that you keep your customers informed about any changes to your product or service. If a customer has a complaint, make sure that you listen to their concerns and address them promptly.
The concluding words of wisdom
And remember, prevention is always better than cure when it comes to commercial litigation. Taking some simple precautions can save you a lot of time and money down the road. By understanding what commercial litigation is and how it works, you can take steps to avoid it altogether. Well-drafted contracts, mediating disputes early on, and communicating with your attorney regularly are all effective ways to prevent commercial disputes from escalating into full-blown legal cases.