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Common Types of Commercial Disputes

Legal3

A civil lawsuit is typically filed between two parties to enforce a legal right, which usually involves the plaintiff seeking financial compensation from the defendant. When this involves businesses, it is typically referred to as a commercial litigation. There are a wide variety of dispute types that fall under the umbrella of commercial litigation, including all business disputes.

Commercial Litigation Examples

Some of the most common types of commercial litigation cases include:

  • Breach of Contract: Contracts dictate each party’s duties and responsibilities, applicable deliverables, price, and more. Companies rely heavily on the use of contracts, and if one side fails to keep its side of the agreement, they are in breach. Subject matter on a contract can be anything from sales to mergers and acquisitions.
  • Breach of Fiduciary Duty: A fiduciary duty is the obligation one party has to protect the interests of another entity or party. Within a corporation, a board member has a fiduciary duty to its shareholders. If the board member violates this duty, the shareholders can file suit.
  • Non-Compete Clause Disputes: It’s not uncommon to have an employee sign a non-disclosure agreement and/or a non-competition agreement. These agreements state that the ex-employee will keep business and trade secrets private and they won’t work in or start a competing business within a certain time frame. In the event this agreement is in breach, the employer may elect to file a lawsuit to enforce the agreement.
  • Partnership Disputes: Disputes between business partners is not uncommon. Building a business is a challenging venture, and people have different personalities, work styles, and ethics. Relationships can break down or one partner may do something that goes against the business, bringing rise to a legal dispute if it cannot be worked out internally.
  • LLC Member Disputes: LLCs with multiple members also run the risk of conflicts. Having a comprehensive operating agreement can limit the chance of some disputes because it spells out the operations and duties and responsibilities of each member.
  • Intellectual Property Disputes: Intellectual property disputes are another common source of commercial litigation suits. These center around violations regarding copyrights, trademarks, patents, trade secrets, etc.

Other types of commercial litigation can involve a variety of other matters, including bad faith, antitrust, insurance coverage, product liability, debt collection, real estate, shareholder, cybersecurity, environmental, and construction disputes.

Comparing Civil and Commercial Litigation 

Both types of litigation proceed in a fairly similar manner. In addition to the involved parties being different, commercial litigation matters tend to be far more complex, legally and factually speaking. Often times, a commercial case winds up in federal court and may even be a class action or involve multiple jurisdictions. It’s not uncommon for commercial litigation matters to take significantly longer to resolve, and they are typically more expensive. This is partly due to the use of experts and other costs of discovery.

This is one of the reasons it’s so important to hire a skilled and experienced Florida commercial litigation attorney. You need an attorney who has ample experience trying commercial litigation matters, including in federal court. At Pincus & Currier, LLP, we specialize in commercial litigation matters throughout the entire state of Florida. Contact our West Palm Beach office today at 561-868-1340 to schedule a consultation.

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