What Is Commercial Litigation? Commercial Litigation Explained

The legal profession is quite diverse, and lawyers differ considerably in their areas of specialization.  

You'll find criminal lawyers who specialize in prosecuting cases related to criminal activities and family lawyers who deal primarily with matters concerning domestic relations.  

There's another unique category of law known as commercial litigation. This article delves deep into commercial litigation by uncovering what it is, a brief history, and everything in between. 

Introducing Commercial Litigation  
 

Commercial litigation is a term for any legal dispute or action that arises in the business context. These disputes typically involve one or more corporate entities. For instance, a local community might choose to undertake a class-action lawsuit against a company that fails to uphold its corporate social responsibility.  

An employee might also sue their former employer for wrongful dismissal, negligence resulting in bodily harm, and similar cases.  

It's important to point out that corporate entities aren't always the defendants in commercial litigations. They could as well be the plaintiffs. For instance, a company may sue a rival firm for copyright infringement. An organization may also sue the state for imposing unfavorable tax laws.  

The rise in commercial litigation cases has translated into a corresponding increase in commercial litigation lawyers. Finding a reputable commercial litigation law firm is a lot easier today than before. But as you might expect, there are certain factors to consider while choosing these companies. More on this later on. 

What Constitutes Commercial Litigation?  

 

The general definition of commercial litigation is any dispute involving a corporate entity. Below are some of the issues that might constitute commercial litigation;  

• Employment cases, such as poor working conditions and unfavorable remuneration  
• Shareholder issues  
• Partnership or joint-venture disputes 
• Workplace negligence  
• Copyright infringement  
• Breach of contract  
• Debt recovery 
• Class actions 
• Civil RICO (racketeer-influenced and corrupt organizations) claims 
• Business torts 
   

History of Commercial Litigation  

Italy is widely regarded as the cradle of commercial litigation.  

In 1553, the jurist Benvenuto Stracca, (Ancona, 1509–1579) published the treatise 'De mercatura seu mercatore tractats.' This treatise is considered the first legal imprint dealing primarily with commercial law.  

It initially focused on merchant contracts and maritime rights. Later, other facets, like bankruptcy, commissions, and insurance, were introduced.  

But despite Italy being the cradle of commercial litigation, the Western world accounts for the most significant trade lawsuits. A noteworthy mention is the 1998 Tobacco Master Settlement Agreement, the most significant litigation settlement in history.  

The Tobacco Master Settlement Agreement resulted from numerous lawsuits filed by 46 states to recover billions of dollars lost in treating smoking-related illnesses. The suits ended in a joint settlement of $206 billion. That made it the largest historical settlement, a record that might not soon be beaten. 

 

How to Choose a Commercial Litigation Law Firm  
 

Specialization is the most crucial consideration for the best commercial litigation law firm. Always establish that the company specializes in handling mercantile/trade law disputes before engaging them further.  

The next step is to check for the three Rs – ratings, reviews, and referrals. Any commercial litigation company worth its salt must have already garnered positive reviews from most of its previous clients.  

Insist on reviews published on third-party websites, not the law firm's homepage. This gives you the peace of mind of knowing that the feedback is credible and not sponsored by the firm to misrepresent its services.  

And as you check online reviews and ratings, you might also ask the law firm to furnish you with a list of their happy clients. You can then contact these individuals to learn more about their overall experience working with the company.  

Client care is another key indicator that a commercial litigation attorney is worth hiring. Prioritize law firms that are genuinely concerned about your predicament. The company should commiserate with you before getting down to the professional aspects of your case.  

Experts also recommend picking a commercial law firm with the financial muscle to advance court costs and expenses. It proves that the attorney is betting on a positive outcome, as the advance payments are usually refundable. 

Last, choose a commercial litigation attorney from reputable law associations like the American Law Society.  

Must All Commercial Disputes End In A Court Of Law? 

Not all commercial disputes should end up in a lawsuit. Your attorney will discuss the merits of the case and advice on whether you should consider a full trial or alternative dispute resolution (ADR).  

Alternative dispute resolutions are how parties in a legal dispute can resolve their grievances without undergoing a formal trial. They’re considered a faster, cheaper, and more amicable way to resolve disputes.  

Your commercial litigation attorneys will recommend the ADR route if they believe that going the full trial could be more injurious to you. Besides the fact that commercial suits may take agonizingly long to be determined, they could also result in a significant loss of productivity and taint your reputation.  

 

Wrap Up 
 

Commercial litigations can affect any company, from small-time startups to multinational conglomerates. Therefore, it’s imperative for entrepreneurs and business managers to be ever-ready for these lawsuits.  

The best way to cushion your company from commercial litigations is to adhere to all the statutory regulations and your industry’s standard practices. The following best way is to have a commercial litigation attorney on speed dial.