Business Disputes That Require a Business Attorney

Some business disagreements can be resolved informally, while others present significant legal, operational, or financial risks. This article discusses several types of disputes in which consulting a California business attorney may be particularly important, including intellectual property disputes, significant contract breaches, employment claims, and shareholder disputes.

Key Takeaways

• Not every business disagreement requires litigation or extensive legal intervention.
• Legal guidance becomes particularly important when a dispute threatens significant assets or business operations.
• Intellectual property disputes can involve complex questions about ownership, infringement, and available remedies.
• Significant contract breaches may require quick action to minimize losses and preserve legal rights.
• Employment disputes can expose businesses to substantial liability and regulatory concerns.
• Shareholder disputes may involve fiduciary duties, corporate governance, management, and ownership rights.
• Consulting an attorney early may create more opportunities to resolve a dispute before it becomes more expensive or disruptive.

 

Even though Americans pride themselves on their rugged individualism and independence, there are some things that simply should not be attempted by amateurs or those without the proper knowledge and experience. For example, working on your car’s transmission when you have difficulty replacing the headlights can ruin your car and end up costing you thousands of dollars in repair bills. In the same way, it can be disastrous for your business if you attempt to resolve every dispute or issue yourself without the advice and assistance of a California business dispute lawyer.

 

Consult a California Business Dispute Lawyer for Help Resolving Legal Issues

Ultimately, only you can determine if you need legal assistance and representation for your business during a commercial dispute. For new California business owners – or for experienced owners facing unique situations – it can be difficult to know when you are in a situation beyond your ability to effectively resolve. Some disputes that will almost always require legal assistance from a business dispute lawyer include:

 

• Intellectual property disputes: The law surrounding intellectual property rights (copyrights, trademarks, and the like) is extremely complex, and proving your case in court can require a great deal of specialized knowledge. Unless a business owner has a background in engineering and is familiar with the elements of an intellectual property infringement claim, this is one type of dispute best left to an attorney.
• Material breaches of contracts: Some breaches of contracts result in little to no damages to your business. These can usually be resolved informally between the breaching and non-breaching party. When a breach has caused a severe disruption to your business’s operations (i.e., a missed shipment of raw material that causes your production line to shut down) or threatens valuable assets, you need to take swift action to control the damage and seek redress. A business dispute lawyer can help you do this.
• Employment disputes: If you have one or more employees who are claiming discrimination or violations of federal or state employment laws, the sanctions that state and federal agencies can impose against you can effectively close your business. In employment discrimination suits, employers often must document and explain the legitimate reasons for employment decisions and how they are nondiscriminatory. 
• Shareholder actions: Shareholders of a corporation hold a great deal of power over the directors of a corporation and can bring a legal action against the directors themselves in certain cases. Because these cases typically involve resolution of longstanding but often misunderstood legal concepts such as the business judgment rule and the corporate “veil,” it is best to have a business dispute attorney to help you.

JGPC Law is Your California Business Dispute Law Firm

California business owners facing disputes and legal actions, JGPC Law’s team of professional and knowledgeable attorneys are there to help you resolve the matter effectively and efficiently. Contact our Pleasanton law office at (925) 463-9600 and allow JGPC Law to help your business move forward.

Frequently Asked Questions

When should a business hire an attorney for a dispute?

A business should consider consulting an attorney when a dispute involves substantial financial losses, important contracts, intellectual property, employment claims, ownership or shareholder issues, threatened litigation, or other matters that could significantly affect the company’s operations or assets.

Does every breach of contract require a business attorney?

No. Minor disagreements can sometimes be resolved directly between the parties. Legal assistance may become more important when a breach causes substantial losses, disrupts operations, threatens valuable assets, or cannot be resolved through negotiation.

Why should a business use an attorney for an intellectual property dispute?

Intellectual property disputes can involve complex questions about copyrights, trademarks, patents, trade secrets, licensing, ownership, and infringement. An attorney can help determine what rights exist and what options are available for protecting or defending those rights.

When should an employer seek legal help with an employee dispute?

Legal guidance may be appropriate when an employee alleges discrimination, harassment, retaliation, wage and hour violations, wrongful termination, or other violations of state or federal employment laws. Early review can help the business understand its obligations and respond appropriately.

What kinds of disputes can arise between shareholders?

Shareholder disputes may involve management decisions, voting rights, access to company information, fiduciary duties, ownership interests, distributions, corporate governance, or allegations that directors or controlling shareholders have acted improperly.

Does hiring a business dispute attorney mean the dispute will go to court?

No. An attorney may help resolve a dispute through negotiation, mediation, arbitration, or another approach without litigation. When litigation becomes necessary, an attorney can also help the business protect its interests throughout the court process.

 

The content presented in this article is for general informational purposes only. It is not, nor is it intended to be, legal advice. It does not constitute the formation of an attorney-client relationship. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.