Business litigation is a complex practice area that can overwhelm or confound even the sharpest minds. To help make sense of what business litigation is and what it can mean for you, let’s dive into the various facets of business litigation and explore what the business litigation process can look like.

Business Litigation Starts With a Dispute

Business litigation can stem from one single dispute or involve several disputes wrapped up together, depending on the nature and complexity of the issue(s). Whether the circumstance involves owners, executives, employees, vendors, or customers, business litigation always involves a legal dispute of some degree.

In many cases, problems can be resolved without involving the legal system. However, there are times when reconciliation is impossible without legal intervention, or the issues are so complex that you require a skilled team of business litigation lawyers to guide you through the steps that follow and provide strong representation in the courtroom.

Business Litigation Covers Many Issues

If the dispute involves a business in any way, it can fall under the umbrella of business litigation. Common issues include:

• Breach of contract
• Class action lawsuits
• Employment claims

Breach of Contract

Breach of contract is one of the most common (if not THE most common) types of business litigation issues in which legal teams are involved. Contracts are crucial to business operations and pertain to nearly every facet of a company or organization. They can include both written and spoken agreements between employers, employees, vendors, and clients or customers, such as:

• Business entity contracts
• NDAs
• Employment contracts
• Sales or service contracts
• Leasing agreements

No matter which contracts your business utilizes, if one has been broken or violated in any way, it could result in significant damages for you or your team.

A business lawyer can help you construct and enforce your contracts or help defend you against any breach of contract allegations that come your way.

Class Action Lawsuits

In almost every class action case, a business is in the defendant’s chair, fighting against many plaintiffs’ allegations of the business’s wrongdoing.

Leading examples of class-action lawsuits include:

• Product liability – In 1998, several major tobacco companies paid out $206 billion, which went to victims of smoking-related illnesses.
• Data breaches – In 2021, Facebook paid out $650 million when it was discovered that Cambridge Analytica harvested user data from Facebook.
• Company discrimination – In 2003, Abercrombie & Finch was found guilty of having discriminatory polies in place against qualified Asian, Black, and Latino applicants.
• Fraud – Enron suffered a $7.2 billion settlement in 2008 when investors claimed the company defrauded them right before declaring bankruptcy.
• Unfair wages – In 2014, Morgan Stanley was ordered to pay $4.2 million to sales assistants who never received compensation for overtime work.
• Pollution – BP faced a $20 million settlement in 2016 for the environmental damages caused by the Deepwater Horizon oil spill.

If you’ve found yourself at the center of a class-action lawsuit, a skilled team of business litigation attorneys can help defend your company against allegations and fight for you in court.

Employment Claims

There are many reasons an employee may file a claim against their employer or vice versa. Examples of employment disputes can include:

Employee vs. Employer

• Wrongful termination – whether the employee is terminated on the basis of discrimination or retaliation, the employee may have grounds to bring a claim against their employer for wrongfully terminating them.
• Harassment or discrimination – The harassment or discrimination may be initiated by a company leader, or it can come from a fellow employee. No matter which, if it is reported but not addressed and continues to create a hostile work environment, the employee can file a claim against the company for damages.
• Unpaid wages – It is standard for employees to sign contracts that clearly lay out the number of hours they are expected to work, salary or hourly wage amounts, and overtime compensation details. An employee can file a claim over unpaid wages if they are not receiving their paycheck, are not receiving fair overtime, or are not receiving the regular payment amounts promised.
• Unsafe working conditions – Your employer is responsible for creating safe working environments, no matter what, and there are many ways that can be violated. From having employees work in an office building that is riddled with toxins to operating faulty machinery, not providing necessary PPE, ignoring safety protocol at job sites, and more, an employee can bring a claim against their employer citing an unsafe workplace.

Employer vs. Employee

• Negligence on the job: A mistake due to human error is usually not severe enough to justify a claim. However, significant negligence or misconduct that leads to property damage or personal injury can be a justifiable reason an employer may bring a claim against their employee.
• NDA, non-compete, or non-solicitation agreement violations: Employers often require their employees to sign contracts preventing them from revealing certain information, competing against the employer, or soliciting the company’s clients or customers after leaving the company. Violating any of these agreements can result in the employer bringing a claim against the agreement-violating employee.
• Theft: The employer can file a claim if an employee is caught stealing company materials or tangible property. This is also true for stolen data, disclosed information, or trade secrets.

If you are an employer or an employee currently disputing with the other, a knowledgeable business litigation attorney can help build your case, defend you, and fight for fair and desirable outcomes in court.

More Business Litigation Types

As mentioned, business ligation can involve any dispute related to a business or organization. Types can include, but are not limited to:

• Breach of contract
• Breach of fiduciary duty
• Breach of privacy or security
• Class action lawsuits
• Employment claims
• Fraudulence
• Insurance coverage issues
• Intellectual property claims
• Personal workplace injury lawsuits
• Product liability
• Real estate and zoning/land use disputes
• Shareholder or partnership disputes
• Tortious interference

The business litigation Lawyers at Clark, Smith & Sizemore Are Ready to Fight for Your Case.

If you have found yourself in a dispute relating to your company and others involved with your company, talk to the team at Clark, Smith & Sizemore. Our team will analyze your case and can fiercely represent you in the fight for justice. Call us today for a free consultation: 478-254-5040.

Thanks for checking out part 1 in our 6-part series about business litigation. Stay tuned for all articles, which include:

• A Closer Look at Business Litigation
• Do I Need a Business Litigation Lawyer? 4 Signs That Say You Do
• What Is a Breach of Contract? Types, Penalties, and How to Avoid One
• A Deep Dive Into the Non-Compete Agreement
• What Is Intellectual Property?
• Types of Intellectual Property and How to Protect Your Rights