Commercial disputes arise all the time. They can exist where any transaction or agreement is involved. Consumer disputes, arguments over probate, property litigation claims and product liability issues are just a few of the areas in which commercial litigation may be an option. The process of commercial litigation essentially involves working through the issues raised by either side and putting the creation of a solution into the hands of a third party – the courts. Although every case is different, when it comes to a commercial dispute, there are some very clear indicators which it may be time to step away from the negotiating table and into the court room.
No agreement can be reached
You may have called in a third party mediator or you may simply have been trying between yourselves to resolve the disagreement. Either way, if there is no possibility of any agreement being reached then commercial litigation may be the only way forward. It is worth noting that some effort must have been made to resolve problems outside of the legal process before resorting to commercial litigation – it is often the case that sitting down with someone in the same room, rather than sending angry emails or letters, can be far more productive and may resolve the issue without the need for litigation.
There has been Significant Loss
To be successful in commercial litigation there must usually have been loss and where significant loss is involved, sometimes litigation becomes the only way to proceed. Damages can be awarded for actual economic loss as a result of the actions or inactions of the other party, as well as for situations of non-monetary impact, such as distress, anxiety, disappointment and inconvenience. The kind of damages that may be applicable will depend on the type of claim and the parties.
Expertise is required
While we enter into contracts many times a year, a large number of us read them without understanding the legal context behind them. It is often only when we get to the point of a dispute over the wording of a document that we realise we are not sure whether it says what we thought it did. Commercial litigation is a good option for cases where there is confusion over the wording of a contract, how the law applies to that contract and set of facts, and what usually happens in similar situations.
A Situation has become acrimonious
Whether a dispute arises in a consumer, personal or business context, it is easy for situations to escalate and become loaded with emotion and anger. When a dispute becomes particularly acrimonious sometimes the best way to find a solution is to start litigation, as this introduces a clear process and a focused way of thinking about an issue that can help put emotion and anger to one side. Instructing solicitors introduces a valuable third party viewpoint and can disperse tensions that were threatening to reach boiling point.
Find out more about the best way to handle your dispute by getting in touch with Goodharts today.