Butting Heads: Understanding Business vs. Commercial Litigation
Steven Simicich

There is a common misconception: the terms “business” and “commercial” litigation and they are often mistakenly used interchangeably. It’s crucial to recognize that these terms refer to distinct areas of legal disputes, each carrying unique implications for your business.

With that in mind, I'd like to provide you with a brief overview of the key differences between these two types of litigation, along with some common examples to help clarify.

 

Commercial Litigation

Commercial litigation typically encompasses disputes arising from business transactions or contracts between different companies. This domain often focuses on issues such as contract breaches, disagreements over intellectual property rights, and disputes involving leases or the sale of goods. Such cases usually center around external conflicts, with two or more businesses contesting terms or agreements made between them.

 

Business Litigation

On the other hand, business litigation primarily concerns internal disputes within a single company. These cases tend to involve issues related to compliance with state and federal regulations. Common examples include employment lawsuits, shareholder disputes, or matters related to workplace safety rules. Unlike commercial litigation, business litigation delves into the internal workings and conflicts within an organization.

Understanding these differences is essential for any business leader, as the strategies and outcomes of these litigations can significantly impact a company’s operations and reputation.

If you have any questions or require assistance with any legal matters, please feel free to reach out. We’re here to help navigate these complex waters with you. 

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