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California Commercial Litigation: Managing Conflict

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What is a commercial dispute? 

If you or another party contests an exercise of a right in a business setting, that’s, in fact, a commercial dispute. There are many types of commercial litigations. Disputes may arise due to late delivery of goods or services, unpaid invoices, talent poaching, undelivered goods, non-compliant goods, etc.

Commercial disputes may also arise out of unfair competition or product defects. There must be a relationship and a commercial contract between claimant and defendant in a commercial dispute case.

Over the past decade, the scope of commercial litigation has expanded dramatically, resulting in high stakes, more complex lawsuits, more parties, and more complicated and cumbersome discovery processes.

Here are the typical situations that lead to commercial litigation: 

  • Your customer says that the delivery did not take place or that they only received a partial delivery
  •  According to your client, you made the delivery late, which caused him damage. Indeed, this resulted in the delay in setting up its online store, and therefore a shortfall in revenue.
  • The customer indicates that the delivered goods are (partially) non-compliant
  • A construction project does not conform to contract requirements.

What to do When Commercial Disputes Arise?

Conciliation

Conciliation involves trying to find a middle ground to resolve conflicts without litigation. It can be used by commercial, liberal companies, trade associations, micro-entrepreneurs, or in some cases, individual companies with limited liability. It can be initiated by the judge or by the lawyer to try to settle a dispute outside court. 

This friendly approach to commercial disputes may be preferable since it is, in principle, a fast and cost-efficient way to resolve a growing conflict. For future proof, it would be prudent to keep records of communication exchanges and attempts to stay in touch. A memorandum of understanding is signed to resolve the dispute amicably. A litigation lawyer can assist in the drafting of that memorandum of understanding.

 Mediation

When this conciliation fails, you can choose a mediator, who will act as a go-between to help find a favorable solution for both parties. Mediation is a process promoting fair non-adversarial exchanges between parties to settle a dispute. The parties themselves can request the mediation process. The courts may also order this alternative conflict resolution approach. It is wise to have the arbitration ruling signed by a judge to remain reinforceable in the future.

 Arbitration

Arbitration is an alternative dispute resolution method. Indeed, the procedure consists of the parties submitting their dispute to an arbitral tribunal composed of one or more arbitrators in an odd number, which renders an award. This method of conflict resolution is particularly appreciated in the resolution of commercial disputes because it is confidential and rapid. It follows a specific procedure and a different logic from a classic trial, so it is necessary to contact a lawyer familiar with arbitration law. 

Litigation

It would be necessary to turn to the courts if mediation and arbitration fail. According to the dispute and the parties involved, one would need to go to the commercial court or the civil/criminal court. The referral has to be signed by both parties if there is a joint request for it. If the suit is only a unilateral decision, the legal summons will have to be issued. 

Work with an Experienced Commercial Attorney

A successful commercial litigator helps resolve these disputes both efficiently and effectively, balancing the client’s legal, business, and tactical needs. In resolving these conflicts, be it a breach of contract case or tortious interference, efficiency, creativity, and sound judgment are critical. 

Moreover, seasoned commercial litigators understand that even though every case might have to be resolved at trial, they must always strive toward obtaining the best possible result at a reasonable cost out of court. 

At Hess-Verdon, we can devise and apply a creative legal framework appropriate to the circumstances of each commercial litigation case. We will efficiently identify the key legal and factual issues and manage the many intricate details of these complex matters to ensure a positive outcome. 

Call us at (949) 706-7300.

Newport Beach Business Attorneys Near Me

Hess-Verdon is in Newport Beach. We have 30 years’ experience in business law. We have helped many clients protect their business, grow their businesses, and pass it down to their loved ones through various legal instruments.

Business Litigation Overview

We Focus on the Below Areas of Practice:

  • Corporate and Shareholder Litigation 
  • Breach of Fiduciary Duty
  • Breach of Contract
  • Business Litigation
  • Business Dissolution
  • Commercial Lease Disputes
  • Commercial real estate disputes
  • Corporate, Partnership, joint venture, or Ownerships Disputes
  • Disputes Involving Real Property
  • Business Tort Claims

California Commercial Litigation: Managing Conflict

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Breach of Contract