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;

• Tortious interference;

• Breach of fiduciary duty

• Employment disputes;

• Shareholder disputes;

• Partnership disputes;

• Real estate disputes;

• Commission disputes;

• Product liability;

• IP disputes;

• Class actions; and

• Fraud.

Some examples of business disputes include:

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

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

• A vendor fails to make timely delivery causing damages.

Here are some tips for businesses to avoid business litigation:

• Have clear and well-written contracts in place;

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

• Seek legal advice before making any major decisions or entering into a contract.

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 resolving business disputes through litigation and arbitration as well as helping avoid potential disputes before they occur.