Grace Business litigation is now a part of corporate America. Business litigation goes beyond one company taking another to court for business disputes. It is all about protecting the company’s interests, business ideas, intellectual property, and hard work in bringing their company name and rights.
Business litigation can arise from any manner: a breach of contract between companies, a dispute between business partners, violation of a non-compete agreement, trademark infringement, false advertising, etc. Click here to learn more about business disputes.
Understanding the scope of business litigation
- Breach of contract
It is the most common type of business litigation. contracts are made on every aspect of your business, like transactions for goods and services, the structure of the company, and terms of employment. The business’s success depends upon others fulfilling the contractual obligations to you. And if anyone breaches a contract, they will face devastating consequences.
- Employment
Employment claims are another type of business litigation. Employment issues can arise from:
- Retaliation claims
- Wage disputes
- Wrongful termination
- Family and Medical Leave Act violations
- Harassment or discrimination claims
- Breach of agreements
Employment claims involve federal laws and also depend on individual state laws. Several employment claims have to be pursued via administrative agencies involving different procedures than federal or state court claims.
- Class action
Class action lawsuits generally involve businesses as defendants. These cases involved several plaintiffs affected by the same allegedly wrongful action. Examples include data breaches, product liability, employment practices, pollution, etc.
- Shareholder oppression
In corporations, shareholder disputes can occur if minority shareholders feel that majority shareholders or corporate officers have not protected their interests. Disputes can arise from:
- Payment of dividends
- Breach of fiduciary duty
- Breach of a shareholder agreement
- Excessive compensation
- Disagreement over corporate actions
- Illegal actions like fraud or embezzlement
- Automotive litigation
There are several automotive litigations in the automotive industry. Some issues include:
- Product liability
- Intellectual disputes over property
- Warranties
- Breach of contract
- Misappropriation of trade secrets
- Supply chain disputes
- Unpaid royalties
Force majeure is another vital legal issue that can impact litigation in the automotive industry. The principle applies to excuse contract performance if there is an event outside the party’s control that prevents them from completing their contractual obligations.
- Breach of fiduciary duty
When a person takes a special responsibility to act in another’s interests, it is a fiduciary relationship. It must act in good faith and loyalty toward those to the person they owe a duty. Common breaches of fiduciary duty are:
- Self-dealing
- Misusing funds
- Conflict of interest
- Engaging in illegal activity
