Business litigation is a type of legal dispute between two or more businesses. This type of litigation can arise from contracts, partnerships, shareholders, and a variety of other business relationships. Companies may also find themselves in litigation with the government. Businesses can litigate in the state or federal court, and the process can be very costly.
In a business litigation case, the involved parties must hire attorneys and pay filing fees. If the case goes to trial, there will be additional costs, such as expert witness and court reporter fees. The process can take months or even years to resolve.
Breach of Contract
There are different types of business litigation. However, the most common among them is a breach of contract.
A breach of contract occurs when one party to a contract does not fulfill its obligations. A contract is a legally binding agreement between two or more parties. For a contract to be enforceable, there must be an offer, acceptance, and consideration. An offer is a promise to do something, and acceptance is when one party agrees to the offer. Consideration is what each party will receive under the contract.
If one party does not uphold their end of the contract, the other party may sue for breach of contract. To win a breach of contract case, the plaintiff must prove that there was a contract, the defendant breached the contract, and the plaintiff suffered damages as a result of the breach.
There are four elements to a breach of contract:
- The existence of a contract
- A material breach of the contract
- Causation
- Damages
A material breach of contract is a failure to perform a contractual obligation that is essential to the agreement. The breach must be significant enough to cause harm to the other party.
Causation is the link between the breach of contract and the damages suffered. The plaintiff must also show that the breach was the cause of their damages.
Damages are the losses suffered by the plaintiff as a result of the breach of contract. These can be either direct or consequential damages. Direct damages are those that are a direct result of the breach, such as the cost of repairing damaged property. Consequential damages are those that are indirect, such as lost profits.
Tortious Interference
Tortious interference, also known as intentional interference with contractual relations, is a type of business litigation in which one party intentionally damages the contractual or business relationship between another party and a third party. The damages can be either financial or economic.
The elements of a tortious interference claim are:
- The existence of a contract or business relationship between the plaintiff and a third party
- The defendant’s knowledge of this contract or relationship
- The defendant’s intentional interference with the contract or relationship
- The resulting damage to the plaintiff
Tortious interference can occur in a variety of situations. For example, if a company is trying to lure away one of its competitors’ employees, that could be considered tortious interference. Or, if a company is trying to sabotage a business deal between its competitor and a third party, that could also be tortious interference.
To prove tortious interference, the plaintiff must show that the defendant’s actions were the cause of the damages. This can be difficult to do, especially if other factors contributed to the damages.
Breach of Fiduciary Duty
A fiduciary duty is a legal obligation to act in the best interests of another person or entity. This duty is typically imposed on professionals like financial advisors and lawyers, but can also apply to relationships like business partnerships. A fiduciary duty requires the individual to put the interests of the other person ahead of their own.
Breach of fiduciary duty is a type of business litigation that arises when one party violates this duty. This can happen in several ways, such as by self-dealing or failing to disclose material information. Breaches of fiduciary duty can cause serious harm to the person or entity that is owed the duty and can lead to civil or criminal penalties.
Business litigation can be a risk for companies. It can be expensive and time-consuming. It can also be damaging to a company’s reputation. When deciding whether to litigate, companies should weigh the costs and benefits.
The Legal Help You Need
If you’re running a business in North Carolina, you know that the legal landscape can be complex and challenging. Disputes with customers, vendors, or other businesses are inevitable. When they happen, you need a team of experienced business litigation attorneys on your side.
GPS Law Group has the experience and expertise to handle all types of business litigation matters. We have a proven track record of success in court, and we’re committed to protecting our client’s interests.
Our attorneys understand the unique challenges businesses face in North Carolina and have the knowledge and resources to help you resolve your disputes quickly and efficiently. Call us at (704) 549-1950 or use our online contact form to send a message and set up a consultation to learn more about how we can help you with your business litigation needs.
GPS Law Group serves Charlotte, North Carolina, and the surrounding communities.