Commercial disputes may arise in any business. But knowing the steps and process of resolution can make the litigation process simpler, less stressful, and with better outcomes.
The stakes may be high, whether the disagreement is about contractual terms, partnership issues, or conflicts over intellectual property. We recommend that you hire a commercial solicitor, experienced in litigation who can help you with commercial litigation every step of the way.
But to get you started, this guide offers a six-step method for resolving commercial disputes.
What are the types of commercial disputes?
- Contractual Disputes: A contract may lead to a disagreement if the terms in it are interpreted differently, or if the parties involved fail to agree on any clause in contractual negotiations.
- Partnership Disputes: Partnership disputes come up when business associates do not concur on the management of their joint enterprise or decide to terminate it entirely. Here the expertise of a Company Lawyer might prove valuable in smoothing things over without having to take it further.
- Intellectual Property Disputes: Trademarks, copyrights, patents, and trade secrets can be misused or violated, leading to legal battles over ownership rights and/or damages claims.
- Shareholder Disputes: Conflicts can arise between shareholders themselves concerning their duties to the company and what each party owes other shareholders in terms of obligations and entitlements under the Corporations Act 2001.
- Debt Recovery: Unpaid invoices sometimes become problematic, hence necessitating initiating proceedings against defaulting debtors until all outstanding amounts are collected. Here, a commercial solicitor might help recover debts through ADR methods or reporting to credit reference bodies.
- Employment Disputes: Employers frequently fall out with staff members over working conditions, unfair and unlawful termination claims. While employees may also have grievances against management ranging from unfair treatment meted out towards some workers through favouritism shown by superiors to discrimination based on religion/ race/ sex/ sexual orientation and disability.
Stages of Dispute Resolution
In most cases, early negotiation serves as the initial stage towards finding an amicable solution for both parties involved in a commercial dispute.
Here, commercial litigation lawyers aim to settle matters quickly without resorting to formal methods. It is important that these talks are approached with flexibility because this allows room for compromise.
- Mediation
If negotiation fails to work, then mediation could be seen as the next step. In this case, a neutral third-party mediator comes in to assist in facilitating discussion between two conflicting parties so that they may find some middle ground.
The mediator’s duties are making sure both sides appreciate where one another is coming from and pointing them towards arriving at an agreement that they both feel comfortable with.
Unlike a commercial solicitor that you’ve hired, they are impartial.
Mediation is usually less official than going to court and cheaper too; hence, many firms choose this method first..
- Arbitration
A Commercial Solicitor will typically suggest arbitration when mediation fails. In this case, both parties present their arguments before one or more arbitrators who then make a final legally binding decision on all matters submitted to them within a specific time frame.
Arbitration procedures are more formal compared to those used during mediation but still faster and less costly when weighed against court proceedings which may take many years before completion. This makes arbitration an attractive especially where there is a need for a speedy resolution of the dispute.
- Litigation
Parties may choose to litigate if negotiation, mediation, or arbitration fails to resolve the conflict. Next, the argument goes to court where a ruling will be made by a judge or jury, which can be enforced.
While it can take up time and a significant amount of money, going to court can be essential for disputes that are complex or involve important legal principles.
The most favourable result is likely to be achieved through employing commercial litigation lawyers who can best help you understand the procedure and give you advice about the relative strength of your case and will be highly prepared to run the case in court.
- Negotiating Settlements
Settlement discussions can take place at any time during the litigation process and involve reaching an agreement that avoids trial.
Settling is advantageous because it enables more control over outcomes; reduces costs associated with legal representation and brings quicker resolution to disputes.
Good faith bargaining at this stage may result in satisfactory settlements without the need for court rulings.
- After-Resolution Actions
This occurs after settling a dispute by agreement or judgement whether through settlement, arbitration, or litigation. There are steps that should be taken in order to avoid future conflicts and a commercial solicitor can help with that.
These include:
- Reviewing contracts to update them where necessary.
- Enhancing communication channels within the organisation.
- Instituting better mechanisms for resolving disputes among employees.
The Role of Commercial Litigation Lawyers in Resolving Disputes
Commercial litigators play an important role in settling commercial disputes quickly and without unnecessary fuss.
An experienced company lawyer possesses knowledge about the relevant laws related to the business transactions in question, thus enabling them to come up with appropriate strategies to deal with complex cases.
Here are some ways they can assist:
- Legal Expertise Advice
Lawyers will offer informed advice on the case, possible outcomes, and the best approach towards achieving success given different scenarios.
Having handled many such matters in the past gives them an edge when it comes to advising their clients on relevant legal provisions.
- Representation During Negotiations
Legal representation is essential during the negotiation process because it ensures a better result.
This means that an individual will be able to confidently protect his or her rights so that he or she is are adequately protected during the negotiations. This should lead to good outcomes for both sides.
- Mediation/Arbitration Help
A commercial solicitor with expertise in commercial law has skills related to alternative dispute resolution methods.
They can be very useful in guiding one through mediation or arbitration processes where necessary. They can ensure you’re effectively presenting all the necessary facts and information to help lead you to a fair settlement being reached among the parties.
- Supporting Litigation
In case of matters that end up going to court, the attorney will fully represent the client’s interests ensuring all procedural requirements are met while at the same time fighting hard on behalf of the client to see that justice is served.
- Negotiating Settlements
Your commercial lawyer will try to find the opportunity to settle out of court thus saving time as well as resources. Trials tend to take longer periods before a final determination is made about them, so they will always try to avoid it getting to trial for you where they can.
In Conclusion
Efficient commercial dispute resolutions are achieved through structured approaches that emphasise communication, negotiation, and readiness to consider different resolution methods.
Businesses therefore need to follow these six stages – early negotiation, mediation, arbitration, litigation, settlement discussions, and post-resolution steps – for effective management of conflicts while preserving professional ties and reducing disruptions within their operations.
Being prepared and getting expert advice will help you nip commercial disputes in the bud and let you get back to business.
