More than 40 million lawsuits are filed each year in the United States. It is imperative that every business owner protect their business. Business litigation is a term that encompasses many factors such as negligence, business divorce cases, investment fraud, and product liability matters (to name a few). Many lawsuits are legitimate. However, there are also a plethora of frivolous lawsuits filed each year. Understanding what business litigation is can be the first step to protecting your business assets. Furthermore, if you have not already connected with an experienced litigator, now may be the time to do so. Business litigation attorneys can help their clients to resolve issues more quickly, understand/draft effective contracts, dissolve or acquire businesses, etc. Learn more about the different factors of business litigation below.
Common Types of Business Litigation
Almost 90% of all corporations are involved in some type of litigation at any given point of time. Small business owners represent a large portion of that number. With this in mind, it is important that you have a full understanding of varying degrees of business litigation.
- Fiduciary Duty Litigation: A fiduciary is a person that is responsible for the money and/or property of another. This person and/or entity must act in the best interest of the person that they are serving. People that may take on this role can include attorneys, trust beneficiaries, corporation, partner, business manager, etc. If a fiduciary does not act in your best interest, it can be detrimental to your finances and business.
- Business Divorce Cases: A business is considered an asset just like money, real estate, investments, etc. In the event that a business owner is engaged, married and/or considering divorce it is important to understand the ramifications that a divorce can have on your business.
- Investment Fraud: Investment fraud includes pyramid schemes, advance fee fraud, Ponzi schemes, etc. Typically, offers that include guaranteed returns with very little or no risk should be avoided.
- Product Liability Issues: Manufacturers can be particularly susceptible to product liability litigation. It is important to work with an experienced attorney as these can be complex cases.
Common Misconceptions About Business Litigation
Many people falsely believe that business litigation is similar to a game. This may be true in the movies, but not so much in real life. Any form of business litigation can negatively impact your finances as well as your emotional health. Another misconception is that there is a “winner” in every case. That is not always true. While there may be verdict given, irreparable damage can be done to both parties during the business litigation process.
When to Contact an Attorney
Business owners usually contact business litigation lawyers like Wade L. McClure only after they have received a legal notice or been a victim of some type of negligence perpetrated against their business. An attorney can certainly help in those types of situations. It is never a good idea to represent yourself. In many cases, it is best to have a healthy relationship with your business attorney before this go awry. Forming a strong relationship with your attorney can help you to protect yourself against litigation and/or help to resolve it quickly. Whether you are protecting a multi-million dollar business or just starting one, it is important to have a reputable business attorney on your team.