In the conduct of running a business, it is normal for disputes and conflicts to arise. When the issues cannot be resolved through negotiations or arbitration, the usual result is business litigation. There are various circumstances when business litigation is the only way to resolve corporate disputes and conflicts. An Austin business litigation lawyer will tell you that resolving legal matters is crucial to the success of your company. The areas that business litigation may resolve include the following:
Finances and Investments
They say that money is the root of all evil and when financial matters find their way into businesses and companies, litigation is almost certain to follow. The case that will be filed may involve outsiders or even people inside the company.
A business may push a case against another business if they are deemed as infringing patents, trademarks, or copyrights which is illegal and may be grounds for pursuing a case.
There are instances when insurance claims become one of the major causes of business litigation. In attempts to get higher proceeds, some businesses commit fraud and lie about some information. Insurance companies conduct investigations before granting claims and if they found out that you falsified information, then they have grounds to proceed with business litigation.
Breach of Contract
A contract is a binding agreement between two parties. For this reason, it is important for them to act in good faith and be true to the agreement. When one of the parties breaks the agreement, they are guilty of breach of contract and that violation may result to business litigation.
These are just some common instances that can result to business litigation. Getting involved in a lawsuit can be financially draining on the part of the parties involved. At the same time, it can also eat up so much time and the businesses involved may end up not being able to focus on running their business.