What is Commercial Litigation?

In the business world, disputes are almost inevitable. From contract breaches and product liability claims to unfair competition cases. How can you resolve such disputes when they occur?

One method is through litigation. Commercial litigation refers to resolving a business-related dispute through a law court. This dispute resolution method can be timely and costly and requires a deep understanding of the law.

Read this article to discover more about commercial disputes, their types, and how to resolve them. We’ll also explain commercial litigation, the best responses, and why speaking with a skilled dispute lawyer is essential when dealing with business disputes.

What Is A Commercial Dispute?

Simply put, a commercial dispute is a disagreement between two or more parties involving a business matter. The involved parties might be individuals conducting business, companies, or other commercial entities.

Types Of Commercial Disputes

A commercial dispute can take different forms, depending on the nature/type of the disagreement. Below are some common types of commercial disputes:

  • Property disputes: These include disputes involving buying or selling property, disagreements between landlords and tenants, and issues covered in the Personal Property Securities Act.
  • Competition and consumer issues: Unfair competition, breach of consumer warranty, fitness for purpose, and other consumer issues may cause disputes.
  • Contract disputes: Businesses and clients may disagree due to issues like breach of contract and unfair contract terms.
  • Debt recovery and insolvency: A creditor may use litigation to compel the debtor to repay their debts.
  • Intellectual property disputes: These disputes include copyright, trademark, and licensing issues related to intellectual property.

How To Resolve Commercial Disputes

When commercial disputes occur, the involved parties must look for fair methods to resolve the disagreements. You can use the court or alternative dispute resolution (ADR) methods to address the dispute. These are methods used to resolve a dispute without involving a court of law. They include:

  • Negotiation: The disagreeing parties communicate directly/ through writing and try to negotiate and reach an agreement that ends the dispute.
  • Mediation: This method involves using a mediator (an impartial third party) to guide the parties into reaching an amicable resolution.
  • Conciliation: In this ADR process, a conciliator helps the parties identify possible ways to resolve the disputed issues.
  • Expert determination: Disagreeing parties can use an expert (lawyer, engineer, accountant, etc.) to advise and help resolve a dispute

If the alternative dispute resolution methods don’t bear fruits, the parties might seek help from a court to resolve their disputes. This method is referred to as litigation.

What Is Commercial Litigation?

Commercial litigation simply means using the court to solve a commercial dispute. In most cases, commercial litigation results from disagreeing parties failing to find an ADR method, resulting in one or all the parties seeking the court’s intervention.

The party that initiates the commercial litigation becomes the plaintiff, while the other(s) are the defendants. As a plaintiff, you might be required to file and serve a statement of claim to begin the court proceedings.

What’s The Difference Between Civil Litigation and Commercial Litigation?

Civil litigation is a court case involving two or more disputing parties for a claim not based on criminal activities. Typically, it involves the plaintiff seeking remedies/compensation from the defendant.

On the other hand, commercial litigation is a case where one or all the disputing parties are commercial entities. For example, an employee vs. a company or business vs. business. For comparison purposes, one can consider commercial litigation a subsection of civil litigation.

What Does A Commercial Litigation Lawyer Do?

A commercial litigation lawyer or litigator is a legal expert who specialises in helping clients resolve business-related disputes. The litigator may specialise in dealing with specific commercial disputes like employment, construction, or commercial lease disputes.

Whether you’re a plaintiff or defendant, a commercial litigator can represent you in court, ensuring you get the best possible outcome. If you’re faced with a commercial dispute, speak to an expert commercial litigation lawyer for legal advice and representation.

How To Respond To A Commercial Litigation

As a business owner, you might face a commercial dispute that results in a court case. When that happens, the best action is to seek legal assistance from a skilled commercial litigation lawyer.

The litigator can analyse the case and offer alternative dispute resolution methods that might save you time and money. If it results in facing the judge, legal representation is important to ensure the best possible outcome for you and your business.

Commercial law is complex; representing yourself without legal expertise is not advisable. Therefore, work with a commercial litigator to avoid costly mistakes, save time, and protect your business interests.

Aditum Lawyers Can Help You Resolve Commercial Disputes In Australia

Commercial disputes can have adverse effects on your business, especially if mishandled. It’s critical to consult with a highly experienced commercial litigation lawyer to protect your business when disputes arise.

If you’re a business owner, partner with Aditum Lawyers for all your business legal needs. Whether you’re faced with commercial disputes or need help with contracts, our experienced lawyers are ready to assist. Contact us via 1300 234 886 or book your free consultation to speak to one of your professional commercial litigators.

Resources & Further Reading

  1. http://www.austlii.edu.au/au/legis/cth/consol_act/ppsa2009356/
  2. https://localcourt.nsw.gov.au/alternative-dispute-resolution/types-of-alternative-dispute-resolution/conciliation.html#:~:text=A%20conciliator%20may%20have%20professional,as%20part%20of%20a%20contract.
  3. https://www.qls.com.au/Practising-law-in-Qld/ADR/Alternative-Dispute-Resolution

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal advice. Consult with a qualified commercial lawyer for personalised advice regarding your specific situation.