The simplest and most succinct definition of commercial litigation describes it as a body of law that covers commercial disputes. These conflicts often arise from disagreements over legal contracts. Sometimes referred to as corporate or commercial law, commercial litigation is generally considered a branch of civil law that governs disputes of a public and private nature.

Common areas

Business law regulates contracting practices, corporate contracts, and the sale and manufacture of consumer products. The most common cases involve class action lawsuits, employee disputes, shareholder issues, debt collection, and partnership disputes. In the United States, commercial litigation is quite complex as it is governed and regulated by both the states and the United States Congress. In other words, the rules often differ from state to state, which is why it’s important to speak with legal professionals at established law firms before filing a lawsuit.

legal options

If these disputes cannot be resolved through meetings and negotiations, it may be necessary to go to court. Since they do not involve criminal charges, most commercial lawsuits are heard by a jury in a civil trial. A jury trial may be waived so that a judge can decide these cases, as long as both parties agree.

Because most of these lawsuits are quite complex, they can take several months, even years, to resolve. It is for this reason that courts often encourage litigants to reach an acceptable settlement before the case goes to trial. Of course, the court cannot force either party to agree to an agreement against their will. If the plaintiff and his attorney do not accept the offers made by the defense, the case will inevitably go to trial.

Before trial, a skilled litigator from one of the area’s leading law firms can request that the case be heard in federal court. The reason for this is to minimize the home field advantage for a large company that is headquartered in a particular state. This is only possible when the lawsuit involves a federal program or statute, or when the dispute is between citizens residing in different states and the amount involved exceeds $75,000.

legal fees

Who pays for these cases? There is no set procedure, but a judge can order the losing party to pay all court costs and legal fees, including witness costs, cost of evidence, and filing fees. It is for this reason that most commercial disputes are settled before going to trial.

Due to their complexity and the fact that business laws can differ from state to state, the vast majority of plaintiffs in these matters retain legal advice from leading law firms. As we mentioned, the court may award attorney’s fees to one party if the other party is found to have filed a frivolous lawsuit. That is why a plaintiff should always consult an experienced commercial litigator before taking any legal action.