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Strategies For Success: Winning Your Business Litigation Case

Business litigation can cripple a business or provide it with a proactive strategy for resolving disputes and protecting its interests. Because litigation can be both costly and time-consuming, it is important both to be sure that litigation is the most appropriate path forward in the circumstances and that your business has a strong strategy for prevailing in court. To discuss more matters related to business litigation or to seek a consultation to evaluate your case, contact the experienced New York business law attorneys with Schwab & Gasparini at any of our offices throughout the state. You can reach us by calling (315) 422-1333 in Syracuse, (518) 591-4664 in Albany, or (914) 304-4353 in Hudson Valley or White Plains. 

What Is the Meaning of Business Litigation? 

Litigation is the process of trying a case through the court system. In the United States, litigation is divided into two main types: criminal and civil. In criminal litigation, familiar from both news headlines and many television courtroom dramas, prosecutors working on behalf of the government (also known as "the People") will attempt to prove beyond a reasonable doubt that the defendant (the person charged with a crime) is guilty of committing the criminal offense with which they have been charged. Civil litigation is different. In civil litigation, although the party against whom legal action is taken is still referred to as the defendant, the side that files the original lawsuit is known not as the prosecution but as the plaintiff. 

Parties in Civil Lawsuits

According to Cornell Law School's Legal Information Institute, the plaintiff in a civil lawsuit may also sometimes be called the petitioner, especially in appellate law. In general, however, the designation plaintiff reflects the fact that this party complains to a civil court.

Most civil litigation outside the business sphere is founded on torts, which the Legal Information Institute describes as actions or omissions by one party that do injury - defined as the trespass on a civil right - to another. Civil torts are also common in business litigation, but business litigation also includes another category of civil practice that is not usually found in non-business contexts: contract litigation. In New York, both contract disputes and civil torts are bound by the same Rules of Civil Procedure. 

Injunctive Relief vs. Damages 

The plaintiff in a civil tort case will typically file a brief with the court, alleging that the defendant's actions or failures to act have caused them to suffer harm. In some cases, the plaintiff may instead allege that the defendant's actions or inaction will lead to harm if the court does not intervene. 

The purpose of filing the lawsuit, if it alleges anticipated harm, is usually to seek what is known as "injunctive relief" – essentially, an order from the court to ensure that the party named as the defendant stops the behavior described in the brief. If the damage has already been done, then the plaintiff will typically instead (or in addition) ask the court to provide legal remedy by awarding damages: monetary compensation for the losses the plaintiff alleges they have suffered as a result of the behavior to which they object. 

Burden of Proof in Civil Lawsuits 

The "burden of proof" in civil litigation is different from that applied in criminal cases; typically, in the United States, the plaintiff in a civil lawsuit only needs to show that a "preponderance of evidence" supports the conclusion that the defendant is legally responsible for the harms the plaintiff is alleging. A plaintiff seeking damages, however, will need to prove not only that the defendant is responsible for engaging in the behavior alleged in the original complaint, but also that the total losses the plaintiff has sustained are equivalent to the amount they are seeking in damages.

Business Law: Contracts vs. Torts 

The optimal strategy for any litigation will always depend to some extent on the facts of the case. Other factors to consider include the nature and scope of the allegations, whether the case concerns civil torts vs. contract law, and whether your business is the plaintiff or the defendant in the case. 

Business Litigation: Civil Torts 

When a company is the plaintiff in a civil tort lawsuit, business litigation may involve either the pursuit of "legal remedy" in the form of damages, or petition to the court seeking an order from the bench granting injunctive relief. Sometimes a business lawsuit may seek both: For instance, a company alleging trademark infringement may petition the court for an order to halt the defendant's use of the contested trademark and also seek an award of damages to cover the costs of losses already allegedly sustained. 

A business may also find itself on the receiving end of any of these legal actions. When one company is sued by another, the roles described above are essentially reversed. However, a business may also become the defendant in a lawsuit if the company is sued by a private citizen. These cases commonly arise in premises liability claims. A business may even be sued by multiple individuals alleging tort collectively; these "class action" lawsuits are common in, although not limited to, business litigation over defective product allegations, and are often accompanied by heightened public scrutiny and reputational risk. An experienced business litigation attorney with Schwab & Gasparini may be able to help you develop a strategy for managing the risks to company reputation and brand perception that sometimes unfortunately come with being in litigation.

Business Litigation: Contract Disputes 

Contract disputes differ somewhat from civil tort cases. One important difference is that, in many cases, the parties to a contract dispute may have an ongoing business relationship after their contractual disagreement is closed, as breach of contract allegations are a common framework for this type of business litigation and in many cases courts will not consider even a confirmed breach to invalidate the contract as a whole. 

In the interests of maintaining a cordial working relationship, and for a number of other reasons – notably the time and expense often associated with litigating breach of contract claims – it is very common for businesses, or in many instances the attorneys representing them, to make a serious effort to resolve contractual disputes out of court rather than proceeding to litigation. While the injury claims associated with tort cases can certainly be settled outside of court through negotiation as well, contract disputes by their nature arise in contexts wherein both parties typically have a strong stake in reaching a mutually agreeable solution. When attempts at alternative dispute resolution break down, however, contract litigation can be especially hard-fought and challenging.  

Strategies for Business Litigation Success

Regardless of which of the above scenarios may apply, the core elements of any successful legal strategy will include research, preparation, knowledge of state statutes and applicable case law. A willingness to engage in constructive dialogue can also be a plus – especially if the other side has a point, but occasionally even if you are convinced that the facts of the case are on your side. Working with an experienced business litigation attorney in your jurisdiction can help to lay the groundwork for successful strategy development, and in some cases may facilitate the prompt resolution of disputes, whether through business litigation or careful negotiation. To learn how the New York business law attorneys at Schwab & Gasparini may be able to assist you with your business litigation matter, reach out to any of our conveniently located offices by calling (315) 422-1333 in Syracuse, (518) 591-4664 in Albany, or (914) 304-4353 in Hudson Valley or White Plains. 

Wed Aug 7 2024, 7:49am