When people start their business, they probably don’t give much thought to legal issues. However, many business owners run into some kind of legal dispute at some point. That is why it is important to have an experienced lawyer on retainer. Here are some common causes of commercial litigation from our friends at Brown Kiely, LLP.
Breach of Contract
As a business owner, you can expect to enter into multiple contracts with business partners, vendors and employees. All parties are expected to follow all the terms of the contract. If one party, however, breaches the contract, a dispute can arise. For example, if a vendor doesn’t believe that you fulfilled your duties in a contract, they may sue your business.
Intellectual Property Disputes
If an organization has accused your company of stealing their logo or other property, an intellectual property dispute may arise. Likewise, if another business has stolen intellectual property from your company, you may bring a lawsuit.
When your business hires employees, it is important to educate yourself about the employment laws in your state, such as wage and hour rules, anti-discrimination laws and safety rules. If you don’t, you may find yourself in legal hot water. For example, an employee who is experiencing harassment in the workplace and you don’t do anything to stop it, that employee may file a lawsuit against your business.
Businesses can also face shareholder disputes. These disputes can arise for many different reasons, including misuse of company funds, management and hiring decisions, breach of fiduciary and conflict of interest. If shareholders don’t agree with the way you’re running the company, they may decide to file a lawsuit.
An effective way to avoid these disputes is to draft agreements to let everyone know what is expected of them.
This type of dispute comes about when a company creates a hazardous situation that injures another person. For instance, if a grocery store owner neglects to clean up a liquid spill for hours and a customer slips and falls and gets injured, that customer can file a personal injury lawsuit. The grocery store owner may be liable for the customer’s medical expenses and lost wages.
If your business faces litigation, it is a good idea to consult an experienced lawyer for commercial litigation in Maryland about your situation. A lawyer can assess your case and offer legal advice.