Commercial litigation is a broad term, but it encompasses any legal process that seeks to resolve a business dispute. It could be a conflict between a company and its vendors, customers, competitors or even government agencies.
Commercial Litigation Basics
The legal exposure degree of your company is the first thing to know. Simply put, a company making beauty products has a varying set of concerns compared to one in the service industry like an accounting consultancy. The beauty products company, for instance, needs product liability and may be called on to show that the relevant government agencies have approved the products for human use.
Areas in which commercial litigation can arise include:
- Partnership or shareholder disputes
- Business dissolution
- Franchise disputes
- Debt collection actions
- Employment disputes
- Breach of fiduciary duty cases
- Antitrust & trade actions
- Consumer fraud and protection issues
As the first line of defence, you should implement thorough and well-documented filling systems. Also, keep every vital document both in electronic and hard-copy form.
Good Records & Paper Trails
Other than keeping good and easily accessible records, you should know that honesty is the best policy. This simply implies that you and your employees should be honest, ethical and transparent at all times. Integrity is a key ingredient to the success of a company.
In addition to being ethical, it helps to have record & paper trails of those honest dealings. So, ensure you save all business correspondence, including the internal communications like memos, emails, meeting notes etc.
Preparation is Imperative
There is no telling what may happen to you or your company, and so, it’s important that you are prepared in every aspect. As your business grows, you’ll find that you need a compliance officer to help you stay abreast of the ins and outs of dealing with the government. Also, assign a full-time employee to handle records management and archiving. Being prepared for anything is the best defensive strategy.
Do Not Wait Until It is Too Late
If you end up facing a lawsuit, you don’t want to be looking for a commercial litigation lawyer at the last minute. You need an established relationship with a law firm or attorney. Ensure you interview a number of reputable commercial law firms and attorneys in your region. You need an individual you can trust, but also one that understands your business and your needs, both personal and professional.
As your business grows, you need to scale up your legal coverage as well by using experienced solicitors such as https://www.dphlegal.com/ based in the UK. When growth begins to outstrip the ability of your company’s infrastructure to support it makes things pretty hard and so, you may want to plan ahead. One lawsuit like employee injury or tainted products can threaten the existence of your company and this makes legal coverage imperative.
With proper planning, you can be ready for any legal issue and keep your company running in a smooth manner. Proper preparation means saving all business documents, having commercial litigation lawyers on call and reviewing risk procedures on a regular basis.