What is the difference between commercial litigation and litigation
Business Litigation vs. Commercial Litigation
Starting and managing a business can lead to various disputes that may ultimately end up in court. These disputes are typically categorized as business or commercial litigation.
While the terms business and commercial litigation share similarities and often overlap, it’s important to recognize their distinct differences if you find yourself involved in such a dispute—whether as a business owner or an affected individual. These differences can range from the governing laws to the specific subject matter addressed in each area.
Subject of the Dispute
Business litigation primarily pertains to the formation or operation of a business. It encompasses legal aspects such as regulations, mergers and acquisitions, shareholder rights, and property matters like leasing office or warehouse space. In some cases, the opposing party may be a government regulatory agency if the business entity has violated any laws.
Some common issues that often lead to business litigation include:
Disputes between shareholders and directors
Workplace harassment, discrimination, or wrongful termination
Non-compliance with environmental and safety regulations
Non-compliance with wage laws
Conversely, commercial litigation typically arises from disagreements related to commercial activities or trade that have gone awry. Examples include:
Breach of contract
Enforcement of secured transactions, such as mortgages
Issues surrounding the sale and delivery of goods
Commercial law focuses on the sale and distribution of goods, as well as financing certain transactions. Therefore, commercial litigation involves contracts and transactions, potentially leading to disputes between buyers and sellers, landlords and tenants, or even partners in a partnership.
Governing Laws
Different laws and regulations apply to commercial lawsuits compared to business disputes.
Commercial litigation is primarily governed by the Uniform Commercial Code (UCC), a federal law designed to promote uniformity in commercial dispute litigation and transactions across the states. This includes sales, leases of goods, negotiable instruments, and secured transactions.
Our office can effectively address any questions which may invoke litigation. If you have a potential dispute, please fill out the following form below.
