What is Business Litigation

Business litigation is a specialized legal field dealing with business disputes.

It involves resolving disputes in court or through formal legal processes.

Business litigators, unlike other litigators, must be adept at handling complex financial and business matters, involving extensive document analysis.

They often require expert witnesses in areas like accounting, corporate governance, and securities. Business litigators engage in settlement talks and represent clients in court, managing all aspects of a trial if needed.

What is Business Litigation
Business Litigation Source (Indeed)

Types of Business Litigation

Business litigation covers a broad range of intricate and diverse cases. Typical scenarios and challenges necessitating a business litigator include:

Breach of Contract

A common business dispute occurs when one party alleges a contract breach.

This contract may involve the sale of goods (governed by the Uniform Commercial Code) or a real estate construction project, both requiring specialized legal guidance.

Breach of Fiduciary Duty

Shareholder disputes may occur when one accuses a corporation and its directors of breaching fiduciary duties.

If many shareholders are involved, it could become a class action lawsuit, involving unique legal procedures like appointing a class representative, identifying and notifying all class members, and allowing them to opt-out.


In business litigation, fraud cases often involve both breach of fiduciary duty allegations.

For instance, when a bank investment manager invests a client’s funds in a bank-controlled company without disclosing the conflict of interest or allowing the client to move their funds, it may lead to claims of self-dealing and failure to act in the client’s best interest.

Trade Secret Disputes

Trade secret laws shield businesses from unauthorized use of their technological and commercial information, promoting innovation and ethical business conduct.

However, they don’t grant exclusive rights; they merely prevent improper acquisition or use of the information while allowing others to discover it through fair means.

Partnership Disputes

In partnership conflicts, an experienced business litigator can aid in resolving disputes and preserving the partnership.

If that’s not feasible, they can ensure adherence to the partnership agreement and facilitate a cost-effective dissolution process.

Alternative Dispute Resolution

Not all business disputes require court action. Business litigators recognize that mediation and arbitration are cost-effective alternatives.

Mediation involves a neutral third party facilitating a settlement, while arbitration results in a legal judgment.

The third party often specializes in the dispute’s subject matter, like securities law, labor, insurance, banking, or construction.

Malpractice or Professional Negligence

Professional malpractice may lead to cases like malpractice for doctors and lawyers or professional negligence for real estate professionals and licensed contractors.

Business litigators may defend these professionals and their businesses against claims arising from alleged professional errors or wrongdoing.

Consumer Litigation

When a business is involved in wrongdoing related to consumer products, customers can file claims for breaches of warranty or defective products.

If the business breaks the law, it could face lawsuits from customers, competitors, or others harmed by its actions.

A business litigation attorney is essential for defending against these claims, seeking remedies, and safeguarding the company’s rights and obligations.

While various business litigation forms exist, the ones mentioned are the most frequent. A knowledgeable attorney who grasps a business’s rights and objectives can guide it to the optimal solution. Their expertise aids in dispute resolution, compliance, and representation. Business litigation attorneys contribute to a company’s success, benefiting the community too.