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This is Business: What is Business Litigati

by Armen Kiramijyan on Dec. 05, 2013

Business Business Organization Lawsuit & Dispute  Litigation Business 

Summary: Litigation is the initiation of a formal legal proceeding. Business litigation is the initiation of a legal proceeding concerning any business dispute.

Litigation is the initiation of a formal legal proceeding.  Business litigation is the initiation of a legal proceeding concerning any business dispute.    

Sometimes business disputes amongst parties cannot be solved informally, thus need to be litigated.  This usually happens when one party files a lawsuit bringing forth a legal cause of action. 

Business disputes are very broad as business is very broad.  It can be something as simple a customer complaint to a cross boarder merger.  Some common disputes involve contracts, intellectual property, and insurances claims.

For example, a contract dispute between an investor and a broker, when an investor suspects that his/her investment broker has acted unethically he/she may initiate litigation against the broker. This especially applies when an investor suffers excessive financial loss as a result of the broker’s unethical behavior.

Intellectual property dispute involves any infringement of a patent, trademark or copyright.  Usually, the holder of the intellectual property will send a cease and desist letter to the infringer.  If this doesn’t resolve the issue than the holder will file a lawsuit and the infringer need respond. 

Insurance companies sometimes attempt to avoid fully paying a legitimate claim, or even avoid paying it at all, by using confusing or deceptive wording in the contracts. If commercial insurance companies undervalued or deny a fair claim then businesses, particularly small businesses, can recover the amount they are entitled to with business litigation.

In business disputes between a business and an individual or between two business entities, resolution without resorting to business litigation is always preferable for both parties.  However, in cases where it is not possible, you will need an experienced business litigation attorney who will protect your rights and your company’s interests.

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