Business Litigation and Arbitration 

Business litigation and arbitration occur when legal disputes between businesses or between a business and an individual cannot be resolved without formal legal proceedings. Arbitration and litigation are similar but district legal proceedings. Litigation occurs in state or federal courthouses, while arbitration occurs outside of the courthouse. The majority of business contracts contain mandatory arbitration clauses for both business and legal reasons. This means many contract related legal claims must proceed via arbitration.  

Business litigation and arbitration can cover a wide range of legal claims, including, but not limited to:

• Breach of contract;

• Employment disputes;

• Shareholder disputes;

• Partnership disputes;

• Real estate disputes;

• Product liability;

• IP disputes;

• Class actions;

• Fraud;

• Breach of fiduciary duty; and

• Tortious interference.

Some examples of business disputes include:

• A employer sue a  former employee for failure to repay a promissory note;

• A shareholder sues the board of directors for breach of fiduciary duty after the board makes a self-serving decision that harms the company;

• A customer sues a company for product liability after they are injured by a defective product;

• A group of shareholders sues a company for securities fraud class action after the company omitted material information. 

Here are some tips for businesses to avoid business litigation:

• Have clear and well-written contracts in place;

• As an executive, broad member or controlling owner of a company, understand your legal obligations, including your fiduciary duties;

• Comply with all applicable laws and regulations.

• Seek legal advice before making any major decisions.

If you are involved in a business dispute, it is important to act quickly and to retain an experienced business litigation attorney to represent you. Attorney Chad M. Ostrosky has extensive experience in business litigation and arbitration.