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Protecting Your Company: When is it Time to Consider Legal Action?

If a supplier, competitor, business partner or former employee is interfering with your company’s operations, it is important to know when is the right time to consider legal action. While litigation can be disruptive, it can also be necessary, and in some cases aggressive action can be critical to mitigating any economic or reputational harm. Here are seven examples of legal issues that will often require use of formal or informal dispute resolution methods to protect a company’s long-term interests:

1. Breach of Contract

Contractual disputes can take a variety of forms; and, while renegotiation and other alternatives to litigation can provide cost-effective solutions in many circumstances, there are also many circumstances in which litigation will be the best – if not the only – option. Click to learn about common claims in business contract disputes.

2. Indemnification, Representations and Warranties

Along with substantive contract issues, issues involving the “boilerplate” terms – including indemnification, representations and warranties – will often lead to litigation as well. In fact, these often-misunderstood contract provisions are at the center of many complex commercial disputes, and companies that know how to use them effectively can significantly reduce their exposure when things go wrong.

3. Shareholder, Officer and Director Liability

Despite best-laid plans and careful corporate documentation, disputes will often arise between companies and their shareholders, officers and directors. Breaches of fiduciary duty, corporate fraud and other issues can cause substantial harm, and insurance and indemnification issues can escalate already-complex disputes.

4. Unfair Competition and Tortious Interference

Litigation between competitors often involves claims for unfair competition and tortious interference. When one company seek to take advantage of another company’s goodwill or unlawfully harm its reputation, the long-term impact can be substantial, and immediate action can be crucial to curtailing any losses.

5. Non-Compete Violations

Non-competition clauses are ubiquitous in commercial contracts; however, in practice, they are not often enforced. Should your company take action to enforce a non-compete? Here are some legal and practical considerations to help you weigh your options.

6. Protecting Your Company in a Third-Party Bankruptcy

If your company is facing substantial losses as a result of a third-party bankruptcy, you could potentially have a number of different options for avoiding discharge of your debt. Here are five examples of unlawful practices that can justify a denial of discharge in bankruptcy.

7. Issues Unique to Real Estate and Construction Disputes

From landlord-tenant disputes to construction defects, there are a variety of legal issues that are unique to the real estate industry. In addition to business and commercial issues such as those listed above, litigation between landlords, tenants, property owners, developers, contractors and subcontractors will often involve issues such as:

Speak with a Fort Lauderdale Commercial Litigation Attorney in Confidence

If you are facing a potential dispute and would like to discuss your options with a commercial litigation attorney, you can contact our offices in Fort Lauderdale, FL for a confidential consultation. To schedule an appointment at your convenience, please call (954) 767-9662 or inquire online today.