Being a business owner can be challenging. Not only do you have to handle the day-to-day operations of your company and concern yourself with its bottom line — but you must also take measures to protect your business from commercial litigation. Whether you are running a startup or an established corporation, it’s important to understand the basics of commercial litigation in New York, so you can safeguard your legal and financial interests.
Commercial Litigation Involves a Wide Range of Disputes
Commercial litigation can involve many different types of disputes that arise in connection with business relationships or commercial transactions. Your risk of exposure can depend upon the industry in which your company operates. However, there are common types of disputes that can impact any company — and being able to identify them can help you minimize the risk of conflict before it occurs. Some types of disputes that are regularly heard in commercial courts in New York can include those involving breach of contract, breach of fiduciary duty, partnership disputes, fraud, misrepresentation, and disputes concerning commercial real estate.
New York Has Specialized Courts That Handle Commercial Matters
New York has specialized courts that specifically deal with commercial litigation matters. Most commercial cases are heard in the New York State Supreme Court Commercial Division. However, commercial cases can also be heard in federal court if they involve disputes between businesses in different states, and the amount in controversy is more than $75,000.
There are Ways to Minimize the Risk of Commercial Litigation
Although every entrepreneur will likely face a dispute at some point during the course of owning and operating a business, there are certain measures that can minimize the risk of litigation. It’s best to work with a knowledgeable business attorney who can help you develop tailored strategies that meet the needs of your company. Some ways commercial litigation can be avoided are with well-written contracts, maintaining detailed records, proactive risk assessment, and handling issues promptly when they arise.
There are Alternatives to the Litigation Process
Commercial litigation can be complex, lengthy, and costly. There are several methods of alternative dispute resolution (ADR) that can help save the time and expense that would otherwise be spent on litigation. Unlike litigation, ADR is private and takes place outside the courtroom — this can help minimize your company’s exposure to bad publicity and reputational harm.
Methods of ADR that can be used in a commercial case include the following:
- Negotiation — Negotiation is typically the first approach parties will take in a commercial litigation matter, before proceeding to other forms of ADR. It is informal and allows the parties the flexibility to find a compromise that satisfies the interests of both parties.
- Mediation — Mediation uses a neutral third party called a mediator who helps the parties reach an agreement. The mediator assists both sides in identifying the issues in the case and exploring settlement options.
- Arbitration — Arbitration is structured like a mini trial. An impartial third party called an arbitrator acts as a private judge and hears evidence from both sides before rendering a decision.
Importantly, ADR keeps the parties in control of the outcome of their case, rather than let a judge decide. It can also help parties maintain amicability if they continue the business relationship.
It’s Essential to Have an Attorney Who Focuses on Commercial Cases
Having an attorney by your side who focuses on commercial matters is crucial to the success of your business. However, you shouldn’t wait until you face an issue to consult with counsel. It’s important to have trusted representation with you from the beginning who can advise you regarding best practices and help mitigate risk before a lawsuit can arise.
Contact an Experienced New York Business Attorney
If you’re an entrepreneur or corporate owner, it’s essential to have an experienced business attorney who can protect your rights and guide you through the commercial litigation process. Offering trusted legal services and tailored strategies, Barnes & Barnes, P.C. handles a wide range of commercial claims in the Commercial Division of the New York State Supreme Court, federal court, and arbitration forums. Contact us at (516) 673-0674 to schedule a consultation.
