A brief guide to commercial litigation

Where commercial litigation is required, act promptly ― Delays can lead to further setbacks and even potential losses

WHETHER IT’S AN issue regarding shareholders, directors, business partners or members or a dispute between members of your team, it’s essential to know how to manage things effectively.  Where it isn’t possible to resolve a commercial dispute using more informal methods, commercial litigation can be used to help resolve issues such as unpaid debts, or breaches of contract.

What Is Commercial Litigation?

Commercial litigation is where a legal dispute takes place involving a corporate party, with the aim of seeking a specific action or compensation. Instances where you might need to hire a Surrey litigation lawyer can range from internal business issues to larger-scale international cases, including:

• Intellectual property disagreements
• Partnership conflict regarding decision-making or changes to the business model.
• Employment issues, such as unfair dismissal or disputes surrounding staff contracts
• Director or shareholder disagreements

Cases taking place across multiple global locations often require a commercial litigator, since their training also includes cross-jurisdictional knowledge of how the business law operates internationally.

When Is Commercial Litigation Needed?

Where a business dispute cannot be resolved without legal support, a commercial litigator can help to protect your business and keep things running smoothly. Commercial litigation may be necessary if:

• Attempts at using more informal methods prove ineffective or even risk delays, setbacks or loss of evidence
• Contracts or legal rights need to be enforced or clarified by a third party with expertise in this particular area.
• There is an urgent matter (such as an injunction) requiring court intervention to prevent harm taking place.
• One of the parties is refusing to cooperate with their legal obligations.

While an ADR (alternative dispute resolution)  can help save time and expense, it’s not always the most appropriate route to take, particularly when dealing with parties who are proving to be uncooperative or otherwise difficult to deal with.

How It Works

The majority of business disputes can be handled without court intervention, but should you find yourself in a situation where commercial litigation is required, the first thing to do is to remain calm and to assess the situation, before taking the following steps:

1. Gather all relevant documents required to make your case, and ensure you know your position in the matter. Review any written agreements for dispute resolution clauses and any other key details.
2. As a first port of call, try to have a calm, honest and open discussion with the other party, ideally in a private setting to get both of your concerns in writing. Try to focus on business objectives rather than interpersonal conflict throughout this, and retain a cool head.
3. If a resolution cannot be met between both parties independently, mediation can potentially help resolve the issue. This tends to be quicker and cheaper than court intervention, while helping to improve business relationships.
4. If mediation proves unsuccessful, it may be necessary to progress to legal advice. A solicitor can help review important documents or intervene on your behalf where necessary.
5. If a solicitor cannot help, they may advise you to move to the next step: litigation or arbitration, also known as a “formal dispute resolution”.

Where commercial litigation is required, act promptly: delays can lead to further setbacks and even potential losses. A commercial litigator can advise early as to whether legal action is required and if so, help guide you through the process.