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Business · November 25, 2020

Commercial Litigation and Civil Litigation

Civil litigation is a lawsuit between two parties to defend a legal right where the litigant typically seeks compensation in monetary damages from the defendant. Many different types of lawsuits fall under civil litigation.

When companies are involved in a dispute, the lawsuit is generally known as commercial litigation.

Similarities of Commercial and Civil Litigation

Commercial litigation usually advances in the same way that other civil litigation matters do. The usual litigation stages are:

  • Retaining an attorney
  • Conducting factual investigations
  • Researching applicable law
  • Engaging in settlement negotiations
  • Filing suit
  • Conducting discovery
  • Presenting the case before a judge or jury

Differences Between Commercial Litigation and Civil Litigation

Commercial litigation differs from most other civil lawsuits because it mainly involves businesses rather than just individuals. Also, the issues involved are more complex and very specialized, both legally and factually. Commercial litigation, on most occasions, is filed in federal court rather than state court. It can be a class action or multi-district litigation. Moreover, commercial litigation can go on for years due to its many twists and turns compared to other types of civil litigation. It can also be more expensive due to the costs of intensive investigations and forensic experts’ involvement.

Examples of commercial litigation lawsuits include:

  • Insurance Coverage
  • Debtor/Creditor
  • Breach of Contract
  • Partnership Disputes
  • Aviation Disputes
  • Bad Faith
  • Breach of Contract
  • Shareholder Disputes
  • Cybersecurity and Data Breach
  • Tax Disputes
  • Fraud and Misrepresentation

While this is not a comprehensive list of commercial litigation types, it points out some of the more predominant kinds of disputes that can arise in the business setting.

Bottom Line

Commercial disputes are a reality in today’s business environment among companies. Because business disputes can quickly intensify, it is important to lay out a strategy from the start with specific goals in mind. It is necessary to understand while doing so, the different possible outcomes and probabilities of success.

When a company faces litigation, or the threat of a lawsuit, involving an experienced commercial litigation attorney early in the process is critical. Having a commercial litigator coordinate and oversee the gathering of evidence, the retaining of appropriate experts, and the preservation of relevant electronically stored information, among other things, is often the key to a successful outcome. If you would like further information on any type of commercial litigation, please do not hesitate to reach out to any of the litigation attorneys at Andres Lopez Law Firm.