No matter how large or small your business, every business owner wants to avoid litigation. Not only is litigation expensive, but it can also divert a lot of time and attention away from your company. Here are the five most common business disputes that can lead to litigation:

1. Partnership Disputes

Going into business with someone else can add value to a company, especially if each of you bring different but equally important skill sets to the company. Unfortunately, what often begins as a great partnership can sometimes dissolve into disagreements over the direction of the company or profit-sharing and lead to a rift at the top. Mediation or arbitration may be a preferred method of dealing with partnership disputes since they are private, but if the split is especially contentious, you may be headed for court.

2. Employment Disputes

Employee lawsuits are one of the most prevalent sources of business litigation, so taking steps to avoid these types of claims can save you significant time and money. Employees are protected by a number of state and federal workplace laws and can file suit for a number of things, including unlawful termination, discrimination, hostile work environment, wage issues, overtime issues, unemployment compensation, and more.

3. Shareholder Disputes

A company’s senior management and its Board of Directors have a fiduciary duty to act in the best interests of their shareholders. When shareholders believe that corporate decisions are having a negative impact on profitability or that the company is being mismanaged, they may turn to the courts for relief.

4. Breach of Contract Disputes

Contracts are an integral part of doing business, but there are times when parties simply do not live up to their responsibilities under a legally binding agreement. Customers may fail to pay for goods or services, suppliers could fail to deliver what they promised, or a business that licensed your intellectual property may fail to live up to the terms of the licensing agreement. Whatever the case may be, breach of contract cases can be complex and may end up in court for resolution.

5. Customer Disputes

Consumer litigation over defective products, false claims, fraud, or other prohibited activities are on the rise. These are serious disputes that could lead to large damages, harming not only a company’s bottom line but its reputation as well. While it is preferable to try to resolve these disputes through settlement or mediation, these individual or class action matters often result in litigation.

Mestaz Law provides strong legal advocacy for companies involved in business lawsuits. We are known for using our skills, experience, and cutting-edge technology to get great results, whether after trial or through a favorable settlement. Call us today at (602) 806-2068 and schedule an appointment to meet with us about your case.