No one goes into business expecting to have legal troubles, but these scenarios are more common than you may realize. If you stay in business long enough, you’re probably going to have at least one serious dispute. Most business litigation cases don’t make it to trial in California because the plaintiff and defendant settle. Business litigation lawyers can help facilitate negotiations and clarify details about California’s business law.
Business disputes are inevitable
No matter how small your business is, something that involves interacting with people is going to come with the occasional dispute. You may have a dispute with a partner, a lender or a shareholder. You may even have a disagreement over a contract.
A lawyer can help you avoid litigation
When you consult with a lawyer early on during a dispute, you can sometimes avoid litigation. This saves you and the other party time and money. The other side takes you more seriously when you have a business litigation lawyer as well.
Business litigation lawyers have experience
Their familiarity with handling disputes between businesses helps them come up with solutions that both sides are happy with. When the two sides can’t come to an agreement, a business litigation lawyer can draw upon their experience to position your case in a better way than if you didn’t have a lawyer representing you.
Most business disputes don’t make it to trial. Of those that do, possible types of damages that a judge may recognize are compensatory, punitive, liquidated, reliance and restitution. If the plaintiff lost income or profits because of the defendant, they may receive compensatory damages to cover the value of what they lost. Punitive damages are when the defendant intentionally harmed the plaintiff.
A judge awards reliance damages when the defendant failed to fulfill an obligation or misrepresented information that the plaintiff detrimentally relied on. In breaches of contracts, the judge may award restitution or liquidated damages. Restitution is when a promised benefit was not delivered. Liquidated damages are those outlined in the contract.
Having a business litigation lawyer to consult with when problems arise in business might limit the damage done. Your lawyer may help resolve the problem faster while protecting your rights.