Some people misunderstand the difference between commercial and business litigation, as the terms are often used interchangeably in casual conversation. This can create the false impression that they are the same idea, just referred to by two different names. In reality, though, they are two different ideas. There is some level of distinction between the two terms.

Commercial litigation is a subset of business litigation. In other words, not all business litigation is commercial litigation, but all commercial litigation is business litigation. Business litigation is the broader of the two categories, and commercial litigation is a narrowing of that idea.

Business Litigation or Commercial Litigation?

Business litigation covers almost any legal issues related to a business. This could be legal concerns related to business structure, operations, employment, shareholders, contracts, and commercial concerns. These litigation issues could involve disputes between the business and other businesses, individuals, customers, and other parties. Some possible business litigation includes:

Commercial litigation is much more narrowly focused on those issues that arise from commercial transactions. Disputes that arise from contracts, sales, and other transactional agreements are considered commercial litigation. In most cases, these disputes are between businesses that don’t agree on the particulars of a commercial transaction. Commercial litigation could involve:

FAQs

Q: Can a Commercial or Business Litigation Lawyer Help Me Settle Without Going to Court?

A: A lawyer can certainly help you negotiate a settlement rather than go to court and use the legal process to resolve the issue. Negotiating a settlement, though, can be a complex process as both sides need to feel like they gain from the option to settle rather than go to court. This can involve discussing the likelihood of what could happen if the case went to court and why settling and avoiding that expense and time may be a better option.

Having a lawyer do this is helpful because they understand the legal possibilities. It also carries the implicit threat of going to court, which could encourage the other party to be a little more willing to negotiate.

Q: What Does a Commercial or Business Litigation Lawyer Do?

A: A lawyer can do a variety of things involving commercial and business litigation. The first of these is taking a close look at your situation. They can look at any contracts or agreements involved, examine the facts of the situation, and explain how the law applies. With a strong understanding of your situation, they can act as your representative through the legal process.

This effort could start with negotiations with the other party. They can make the case to them why finding an agreement and avoiding court may be better for everyone involved. However, if a settlement isn’t the right process for this situation, they can represent you through hearings and court appearances and make your case for how the dispute should be resolved.

Q: What Makes a Good Business or Commercial Litigation Lawyer?

A: When you work with a business litigation or commercial litigation lawyer, it’s important that you are comfortable with who you hire to represent you. The outcomes of these cases are often important to the businesses involved. So you’re putting a lot of trust in a lawyer when you have them represent your business. There are a few things you should look for in a business litigation lawyer.

It’s important to work with someone who understands both the business law and business. Your lawyer should have a strong understanding of the law, in particular business law that can be unique and lack overlap with other parts of the law.

Without understanding the business side of things, though, they would lack the proper context to really understand how the outcomes of the legal process will affect your business. However, by working with a lawyer who has experience working with businesses and their legal concerns, you can rely on them to understand your business needs.

Q: Should I Settle a Commercial or Business Litigation Claim or Go to Court?

A: Whether or not a settlement makes sense for you will be dependent upon the particular details of your situation. What you and your counterpart are looking to get out of the litigation may lead to either of you being either more or less interested in settling. Generally, though, each option has its advantages and downsides.

Settling usually means giving up something in the final agreement that you might not have had to do in the case of a successful court ruling. However, going to court at a minimum is going to lengthen the process and could make it more costly. It also opens you up to the risk that the court may not rule in your favor. For some businesses, it makes more sense to take the guaranteed outcome of a settlement than going to court.

We Help Resolve Our Client’s Commercial and Business Litigation Issues

Whether commercial or business litigation, one of the most consistent commonalities is that business operators would rather not have to deal with it. We get that sentiment. If everything with a business is going smoothly, then litigation has no part to play. Unfortunately, business doesn’t always operate as smoothly as we would hope. There are times when disputes, disagreements, and issues with business relationships emerge.

In a fair number of situations, it’s possible that these things could be resolved through negotiations. However, this doesn’t often happen without the legitimate threat of a court battle being present. That’s one of the many benefits of working with a commercial litigation and business litigation lawyer. By working with a lawyer, they can examine your case, negotiate on your behalf, and be ready to take the case to court if necessary.

One of the most significant benefits for business operators is that all of this can be done while minimizing their direct involvement, meaning they are free to work on the business they need to. Contact us today if you need help with business or commercial litigation.