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4 common disputes that can lead to business litigation

On Behalf of | Nov 7, 2022 | Business Law |

As a business owner, you spend your days working to make the company more successful and profitable.

However, you need to prepare for the possibility that things can go wrong. Here are four common disputes that could result in litigation.

1. Business-to-business issues

When valuable business relationships go awry, the problems could affect your staff, your resources or your operations as a whole. Good business relationships can last a lifetime but if a dispute arises you need to act quickly. Alternative dispute resolution (ADR) may be the answer to get your business relationship back on track.

2. Disputes with employees

You may adhere to all the applicable laws and requirements, yet problems with staff can still turn up and become complicated. You may face issues over salary, accusations of discrimination or claims of poor working conditions. Disputes with employees may need to be settled in court.

3. Partnership problems

Partnership disputes are the most common form of business discord. Certain problems within the company escalate to the point that they are difficult to resolve. These might include a change in leadership, disagreements over hiring or firing, financial concerns or arguments over the direction of the company.

4. Contract disputes

Contracts are legally binding, and those who sign a contract have a duty to uphold the terms. If one of the parties fails to act or violates the terms of the agreement, the next step is often litigation.

A look ahead

As a business owner, you should prepare for a dispute and possible lawsuit that may never happen. A relationship with a commercial litigation attorney can help you stay several steps ahead of situations that might lead you to litigation.