Commercial litigation is a legal controversy related to business issues. Typical cases include:
- Breach of Contract
- Debt Collection
- Employment Disputes
- Interference with Business Relationships
- Breach of Fiduciary Duty
- Disputes over Non Compete Clauses
- Shareholder Issues
- Partnership Disputes
What can you do to have a winning case?
First, keep good records. Business records are given deference by the Court if kept in the ordinary course of your business. Document telephone calls. When meeting with employees over serious issues, have another person present to witness and take notes of the meeting. If you are going to ask the employee to acknowledge inappropriate behavior, have a document ready for them to sign.
Periodically review your standard contracts and documents. Most customers will sign a contract that states they are responsible for reasonable attorney fees if they breach the contract. Failure to include specific language for reimbursement for attorney fees means even if you win and collect, you will have the costs of the attorney fees. In general, do not sue an uncollectible entity or individual – it is a waste of time and resources. Monitoring your receivables at least monthly, Don’t be afraid to stop doing business with someone who is not paying you.
Operate your business in compliance with the law and take advantage of the benefits of proper planning and documentation. The time to draft an agreement on how the business is going to operate is not when there is a dispute amongst the owners. Invest some resources in properly documenting your business relationships to avoid the need for litigation later.