Practice Areas
Commercial Disputes
Business partnerships and contracts are built on trust. When that trust is broken, you deserve legal counsel who knows your rights and will guide you to your best possible remedy.
No one wants to be involved in a commercial dispute…
but if you are you need good guidance from the legal team at Remedy Law to take you to your best possible outcome.
Commercial disputes can arise out of a variety of circumstances, including breaches of contract, breaches of a fiduciary duty, fraud or misrepresentation, privacy, liability for mismanufacture or design of a product, real estate disputes, and shareholder disputes/shareholder oppression. Commercial disputes are frequently resolved through arbitration, mediation, or litigation.
Although commercial disputes are common and can arise for a variety of reasons, the financial or reputational harm that accompanies a commercial dispute is often difficult to calculate and can be very extensive.
Let’s look at some of the more common types of commercial disputes.
1- Breach of Contract
A breach of contract occurs when one or more parties involved in a contract fail to meet their obligations or responsibilities as outlined in the contract. One party may feel that the other failed to live up to their obligations and may, therefore, wish for a remedy. There are different types of breach of contract, including whether the breach is considered minor or material. The degree to which a contract was breached is a deciding factor in determining what remedy may be awarded.
2- Breach of Fiduciary Responsibility
A breach of fiduciary responsibility is a common type of commercial dispute. The word ‘Fiduciary’ refers to a relationship of trust or responsibility. There are many fiduciary duties that you may rely on in a commercial setting, including a business or business partner’s duty to act in good faith, to maintain confidentiality, or to fully disclose relevant information to you.
All such breaches come from one party failing to fulfill the duties and responsibilities that he or she is legally or contractually obligated to perform. For example, if one partner in a commercial enterprise fails to deal with the other fairly, there may be a breach of fiduciary responsibility.
Similarly, if the director of a corporation fails to meet his or her responsibilities to shareholders, he or she may violate fiduciary responsibilities. There are many ways to breach fiduciary responsibilities, including omitting key information, misuse of one’s position, or a failure to disclose certain information.
3 – Solutions
Alternative Dispute Resolution
If two parties under contract have a dispute, chances are some form of Alternative Dispute Resolution (ADR) is available to discover a solution to which both parties agree. ADR is an attractive choice in commercial disputes, as, aside from cost savings, there are other benefits to ADR, including giving a business a chance to deal with the matter privately and to craft a timely solution that the courts might not be able to fashion.
When negotiations fail, both arbitration and mediation are used to settle commercial disputes. Here are some key differences between these two processes that are worth understanding.
A – Mediation
Mediation is a private process that is agreed to by two or more parties in a commercial dispute. In mediation, the parties in the dispute are brought together with their lawyers and with the help of a neutral mediator, they work to resolve the dispute.
Mediators cannot make a binding decision on the parties that force a resolution to the dispute. Rather, in mediation the two parties themselves must agree on a resolution with the guidance of their lawyers and the mediator.
While not all mediations are successful, this can be an attractive option to reach a timely resolution to a commercial dispute.
B – Arbitration
Arbitration is used in commercial disputes by parties who wish to limit costs and time spent in litigation. In arbitration, the parties present their side of the case to a neutral arbitrator. For arbitration to occur, the parties must agree to the terms of the arbitration.
Arbitration is a less formal version of a Trial. Lawyers for each party will make arguments before the arbitrator, and provide evidence (sometimes including witnesses) that support their respective positions. Once the arbitrator has listened to the parties and reviewed the evidence, he or she will then issue a written decision.
The ability of an arbitrator to make a final ( and often binding ) determination in a commercial dispute is the most significant difference between mediation and arbitration.
When the decision made during arbitration is binding, it will be legally enforceable and upheld by the courts.
4 – Final Thoughts
Commercial disputes include a wide range of circumstances, from breach of contract to a breach of fiduciary responsibility and beyond. How those entities settle their dispute is often controlled by the parties involved in the dispute. Apart from litigation, both arbitration and mediation offer the benefit of being far less costly and time-consuming than going to court. Additionally, these can give parties more control to shape the outcome of the dispute.
Talk with the team at Remedy Law to guide you through the process and lead you to your best possible outcome.
No one wants to be involved in a commercial dispute…
but if you are you need good guidance from the legal team at Remedy Law to take you to your best possible outcome.
Commercial disputes can arise out of a variety of circumstances, including breaches of contract, breaches of a fiduciary duty, fraud or misrepresentation, privacy, liability for mismanufacture or design of a product, real estate disputes, and shareholder disputes/shareholder oppression. Commercial disputes are frequently resolved through arbitration, mediation, or litigation.
Although commercial disputes are common and can arise for a variety of reasons, the financial or reputational harm that accompanies a commercial dispute is often difficult to calculate and can be very extensive.
Let’s look at some of the more common types of commercial disputes.
1- Breach of Contract
A breach of contract occurs when one or more parties involved in a contract fail to meet their obligations or responsibilities as outlined in the contract. One party may feel that the other failed to live up to their obligations and may, therefore, wish for a remedy. There are different types of breach of contract, including whether the breach is considered minor or material. The degree to which a contract was breached is a deciding factor in determining what remedy may be awarded.
2- Breach of Fiduciary Responsibility
A breach of fiduciary responsibility is a common type of commercial dispute. The word ‘Fiduciary’ refers to a relationship of trust or responsibility. There are many fiduciary duties that you may rely on in a commercial setting, including a business or business partner’s duty to act in good faith, to maintain confidentiality, or to fully disclose relevant information to you.
All such breaches come from one party failing to fulfill the duties and responsibilities that he or she is legally or contractually obligated to perform. For example, if one partner in a commercial enterprise fails to deal with the other fairly, there may be a breach of fiduciary responsibility.
Similarly, if the director of a corporation fails to meet his or her responsibilities to shareholders, he or she may violate fiduciary responsibilities. There are many ways to breach fiduciary responsibilities, including omitting key information, misuse of one’s position, or a failure to disclose certain information.
3 – Solutions
Alternative Dispute Resolution
If two parties under contract have a dispute, chances are some form of Alternative Dispute Resolution (ADR) is available to discover a solution to which both parties agree. ADR is an attractive choice in commercial disputes, as, aside from cost savings, there are other benefits to ADR, including giving a business a chance to deal with the matter privately and to craft a timely solution that the courts might not be able to fashion.
When negotiations fail, both arbitration and mediation are used to settle commercial disputes. Here are some key differences between these two processes that are worth understanding.
A – Mediation
Mediation is a private process that is agreed to by two or more parties in a commercial dispute. In mediation, the parties in the dispute are brought together with their lawyers and with the help of a neutral mediator, they work to resolve the dispute.
Mediators cannot make a binding decision on the parties that force a resolution to the dispute. Rather, in mediation the two parties themselves must agree on a resolution with the guidance of their lawyers and the mediator.
While not all mediations are successful, this can be an attractive option to reach a timely resolution to a commercial dispute.
B – Arbitration
Arbitration is used in commercial disputes by parties who wish to limit costs and time spent in litigation. In arbitration, the parties present their side of the case to a neutral arbitrator. For arbitration to occur, the parties must agree to the terms of the arbitration.
Arbitration is a less formal version of a Trial. Lawyers for each party will make arguments before the arbitrator, and provide evidence (sometimes including witnesses) that support their respective positions. Once the arbitrator has listened to the parties and reviewed the evidence, he or she will then issue a written decision.
The ability of an arbitrator to make a final ( and often binding ) determination in a commercial dispute is the most significant difference between mediation and arbitration.
When the decision made during arbitration is binding, it will be legally enforceable and upheld by the courts.
4 – Final Thoughts
Commercial disputes include a wide range of circumstances, from breach of contract to a breach of fiduciary responsibility and beyond. How those entities settle their dispute is often controlled by the parties involved in the dispute. Apart from litigation, both arbitration and mediation offer the benefit of being far less costly and time-consuming than going to court. Additionally, these can give parties more control to shape the outcome of the dispute.
Talk with the team at Remedy Law to guide you through the process and lead you to your best possible outcome.
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