If you’re in charge of a business, you may run into a dispute at some point in time. From breach of contract disputes to conflict regarding intellectual property infringement, read on to find out the most common causes of commercial litigation and discover how to handle business disputes successfully.
Breach of contract
Over the course of running your business, you’ll make agreements with multiple parties, including licensees, employees, and other business partners. Occasionally, one party may clearly breach the agreement. In other instances, there may be accusations of a breach where none truly occurred, or it might be unclear.
In all of these situations, disputes arise over whether the agreement was broken and what should be done about it. If those disputes cannot be resolved, courtroom litigation is one of the possible results.
Intellectual property infringement
The intellectual property of your business, including trademarks, trade secrets, patents, and copyrighted materials, should all be carefully guarded. Certain types of IP are often licensed out to other parties for use in manufacturing or marketing, and those licensing agreements are usually carefully controlled with detailed contracts. If IP is misappropriated or mishandled in any way, it can lead to a commercial dispute and eventual legal action if it isn’t resolved.
Shareholder disputes
While they’re not directly involved with the company’s operations, shareholders do still have rights in and around the company, including holding the power to influence management. Shareholders and company partners may disagree on matters of strategy or policy, which could lead to a business dispute. Disputes may also arise from misusing company funds, failing to uphold fiduciary duties and other types of mismanagement.
Employment issues
Every new worker should sign an agreement outlining their duties as an employee of your company. However, they may not always keep to those agreements. Similarly, your own management team may engage in (or be accused of engaging in) unfair or discriminatory practices. These can both lead to employment disputes, and those disputes can easily develop into litigation.
Professional negligence
When you hire a professional to advise you on specialised matters relating to your organisation, you should be able to expect sound advice. If they don’t live up to the standards of their specific industry, it may constitute negligence on their part. The damages you suffer can be grounds for commercial litigation, but only if they result from actual negligent behaviour. Unforeseeable mistakes typically don’t qualify for legal action.
If you’re involved in a business dispute, contact DJP Solicitors. As well as civil litigation for debt recovery, we’re able to consistently handle complicated business matters, including breach of contract by suppliers, problems with ownership, and commercial property disputes. Our team will provide professional legal advice to prevent these issues and more from spiralling into a full-blown crisis.
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