Business Litigation Information Center

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Litigation

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Frequently Asked Questions about Business Litigation

Q: What is involved when litigating a business issue?

A: This depends on the issue. The business owner would follow the same process for business litigation as he or she would for any civil lawsuit, including usually obtaining an attorney, pretrial matters such as motions, possible settlement negotiations, trial, and possibly appeal.

Q: What are some alternatives to litigation?

A: Businesses often use Alternative Dispute Resolution (ADR) methods. The ADR process usually utilizes arbitration or mediation. These alternatives are attractive because they are often less expensive and more efficient than traditional litigation.

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Courtroom Procedure

In the event your business becomes involved in litigation, knowledge of courtroom procedure is essential. Courtroom procedure can be complicated, and knowing what to expect can enable a business to prepare effectively. In addition, state and federal law govern procedural issues; depending on the jurisdiction and the specific court involved, there may be notable procedural differences. If you are faced with litigation involving a business transaction or any aspect of your business, a lawyer can provide additional assistance and counsel regarding your jurisdiction, court, and possible legal options for your situation. A business lawyer is an excellent resource for information regarding litigation and courtroom procedure.

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Business Litigation - Appeals

An appeal is an official request for a higher court to review a trial court decision based on alleged error of procedure or alleged error in application of the law. In civil cases, including business litigation, this may occur immediately following a decision on a motion or at the end of a trial. The ability to appeal and the timing of an appeal depends on the court rules and laws of the relevant jurisdiction. In the realm of business litigation, the appeals court scrutinizes the lower court decision to determine whether to uphold, reverse, or modify it. If you have questions about business litigation, it may be advantageous to consult with a business trial attorney.

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Class Actions

Class action lawsuits are brought by named plaintiffs, usually one or two, whose alleged injuries are the same as those of a large number of other parties. The plaintiffs do not have to be individuals; businesses may also be class plaintiffs. The purpose of a class action is to combine many similar causes of action. The cause of the common injury could be from any number of sources, such as from violations of federal regulations, product defects, securities fraud, or environmental issues. When multiple plaintiffs with similar claims are involved, litigating each case individually would be expensive and time consuming. A class action suit allows for a combined effort, potentially saving litigation costs and time spent in preparation for and in court.

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Alternative Dispute Resolution

In some instances, a business may want to avoid a complicated and expensive courtroom battle by using instead an alternative dispute resolution (ADR) method. ADR is a way to resolve legal issues without going to court. The two most frequently used forms of ADR, described below, are arbitration and mediation.

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