Commercial litigation is a form of civil litigation when someone commences a lawsuit to resolve a business-related dispute. You are involved in commercial litigation if you or your business is in a lawsuit to enforce its legal rights and pursue damages against other individuals or businesses, or vice versa.
The support of experienced commercial litigation lawyers can help protect your interests and guide your case toward a successful resolution.
What kind of commercial dispute can lead to commercial litigation?
Commercial litigation can arise from various business disputes including, but not limited to:
- Contract Disputes: When two parties disagree over the terms or fulfillment of a contract, necessitating intervention to determine each party’s rights and obligations.
- Business/Economic Torts: Claims resulting from wrongful actions in a business situation, which may cause financial harm to another party.
- Partnership and Shareholder Disputes: Disagreements amongst shareholder or partners of a company or business regarding operations, business relationships, management, or profit distribution.
- Statutory Claims: A dispute to enforce rights and obligations arising from laws governing the operation of a company, such as the Ontario Business Corporations Act, including the pursuit of an oppression remedy claim or derivative action.
What steps should you expect in commercial litigation?
The major steps involved in commercial litigation are:
- Internal Investigation and Evaluation Stage:
Generally, before the lawsuit even begins, each party works with their lawyer to examine key facts, evidence, and legal matters. Documents like contracts and financial records are reviewed. The parties also often engage in efforts to resolve the dispute before starting a lawsuit, including by entering into a settlement.
- Initiating Court Proceedings:
Once a party decides to start a lawsuit, it must prepare its pleadings, which set out the details of its claims. Based on the jurisdiction and nature of the proceeding, it will generally deliver a Statement of Claim or Notice of Application. The other party then delivers its responding pleadings. In some cases, the party who started the lawsuit can deliver a Reply to the new issues raised by the responding party.
- Discovery of Evidence:
The parties exchange documents and have an opportunity to ask questions, in the form of an examination, relevant to the issues in the lawsuit.
- Other Litigation Steps that Can Occur Before Trial:
Some steps before getting to trial can include the bringing of a motion to get the court’s direction in resolving an issue in the lawsuit, the retaining of experts to provide specialized opinions, meditation, and a pre-trial conference with a judge who acts as a neutral facilitator.
- Trial:
If there is no resolution in your commercial dispute, then it will proceed to trial, where a judge or in some cases jury, will make their decision. The decision may be subject to appeal.
What are the potential outcomes you could experience in commercial litigation?
Given that each commercial litigation case is unique, your outcome can depend on many different factors. Some potential outcomes of litigation could include:
- Settlement: The parties resolve the dispute without going to trial, either directly or with the help of a mediator or other alternative dispute resolution.
- Judgment: The court makes an order, which can involve:
- awarding monetary damages
- declaring the rights, duties, and obligations of one or more parties involved in the lawsuit
- specific performance, requiring one party to fulfill an obligation to the other, or
- dismissal, which disposes of the lawsuit
- Appeal: a party may have a right to appeal certain decisions made by the court to an appeals court.
At Whitten & Lublin, we understand the intricacies of commercial litigation. Our commercial litigation lawyers serving Toronto and the GTA bring a comprehensive, strategic approach to your case.
If you’re dealing with contract disputes, shareholder conflicts, or statutory claims, our commercial litigation lawyer will focus on protecting your rights, minimizing disruptions, and achieving the best possible outcome for you and your business.
At Whitten & Lublin, our dedication to clients goes beyond commercial litigation. As renowned Toronto employment lawyers, we stand by our clients in every aspect of employment law, from challenging wrongful dismissals and negotiating severance packages to confronting workplace harassment and defending human rights. Our team also brings extensive experience in handling disability insurance claims, fighting to ensure that clients receive the benefits and support they’re rightfully entitled to. If you’re ready to take control of your situation, reach out to Whitten & Lublin today.
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