Commercial litigation is a means of resolving disputes over issues relating to commerce and contracts. The disputes can be tiresome and problematic for businesses and individuals, and range across a broad spectrum of issues.
Disputes in business most often arise regarding:
- the interpretation of a contract;
- the termination of a contract;
- the formation of a contract; or
- the failure of one or more parties to fulfil their obligations and/or requirements under a contract;
When one or more of these issues arises, the business relationship between parties invariably breaks down. Should this occur, both sides of a business relationship may need to protect their interests. In order to protect those interests, one party will eventually sue the other.
Commercial litigation has increased in the legal realm over time. One of the more common areas of commercial litigation is when a corporation engages in conduct in trade or commerce which is misleading or deceptive, or that is likely to mislead or deceive. The evidence required to establish that a corporation has engaged in such conduct has become heavily scrutinised by the Court, but that has had little bearing on the increasingly litigious nature of the business world.
Insolvency and bankruptcy are further areas in which commercial litigation has become more prevalent. Creditors looking to secure their interests in a company under liquidation are often burdened with disputes over "who is owed what", requiring, in many cases, the involvement of the judicial system to make a decision.
Consumers are often required to engage in commercial litigation when they purchase a product that has caused injury of damage to someone or something, depending on the circumstances. Commencing legal proceedings against a company for damages stemming from product failure is common.
For assistance in solving your dispute, please contact our office.