San Antonio Business Litigation Lawyers

Business litigation refers to disputes arising out of commercial and business relationships, including a company’s claims against another company, governmental entity, or groups of individuals. In business-to-business litigation, both businesses often have claims and defenses as opposed to consumer litigation in which there is a distinct plaintiff and a distinct defendant (i.e. personal injury law where there is a victim suing because of injuries suffered).

San Antonio business litigation can take place in a variety of forums, including a San Antonio courtroom through traditional litigation or, pursuant to a contractual agreement, in a private arbitration setting. Each possible forum has benefits and downsides, all of which an experienced attorney can thoroughly advise business clients on.

Business litigation issues are typically quite complicated and can be unique to the particular business, meaning that an attorney’s understanding of the client’s business is a critical factor in the outcome of the business litigation. It is usually advisable for a business to maintain a long-term relationship with attorneys so that the attorneys can maintain a consistent awareness of the current goings-on at the business and advise on potential legal issues before they even develop.

Moreover, because lawsuits are public records, it is crucial for all litigation to be handled in a manner that is sensitive to Public Relations (PR) considerations for the business. Lawsuits can tarnish reputations and cause financial damage by negatively impacting sales. Therefore, effectively managing any and all business litigation disputes is pivotal.

Continue reading in order understand some of the types of legal issues that a business might face in San Antonio.

Types of Business Litigation Disputes

Businesses can become involved in a variety of legal disputes. Such disputes may include but are not limited to:

• Business torts: a business tort refers to unlawful actions committed against businesses that result in economic loss. Though business torts are sometimes caused by negligence, such actions are, many times, intentional in nature. Individuals and other businesses seeking to intentionally inflict financial harm, or those who negligently cause such harm, can often be held liable for the loss. Business torts include tortious interference and restraint of trade.
• Breach of contract: breach of contract disputes may include, but are not limited to, instances where a partner you trusted breaks their contractual obligation, which can cause irreparable harm to your business. Legal action seeks to hold the person in breach of their contract responsible for their actions.
• Fraud: many times, business fraud includes knowingly misrepresenting information and facts.
• Non-compliance with non-compete agreements
• Business divorces: pursuant to Texas Family Code §§ 3.001 et seq., Texas is a community property state, which means that all marital property must be divided equally between spouses. If both or even just one spouse started a business during the marriage, the business will need to be divided.
• Interference with contracts: this refers to when one person intentionally damages someone else’s contractual or business relationships with a third party, thus causing economic harm.
• Partnership disputes: while there can be many reasons for a dispute between partners, the cause of many of them is a weak or completely non-existent partnership agreement. Such disputes could also include several partners trying to exclude another from certain aspects of the business, or they could involve deadlocks between partners who share equal control of the business. These and other business partner and shareholder disputes can be resolved under the Texas Business Organizations Code, as well as the specific partnership agreements that apply.
• Shareholder disputes: this refers to disagreements amongst shareholders or between shareholders about the governance of the business or some other essential detail about the company’s operations, finances, etc.
• Employment disputes
• Embezzlement: this refers to the wrongful appropriation of entrusted funds.
• Breach of fiduciary duties: this includes removing funds from a business account for personal use.
• Unpaid invoices or debts
• Misappropriation of assets: involves the actual theft of an entity’s assets. This can be accomplished by common theft or by an organization paying for goods and services not actually received (for example: fictitious vendors or employees).
• Stealing trade secrets or intellectual property

The list above is non-inclusive, and there are many types of legal disputes that a business may confront in its lifetime.

Importance of seeking pre-dispute legal advice

Where possible, seeking legal advice in order to proactively prevent business litigation disputes (like many of those listed above) is highly advisable. During the early stages of potential conflicts as well as at the front end of business transactions, it is wise for business leaders and owners to seek legal advice regarding:

• The drafting and negotiation of contract provisions for the choice of venue, indemnification, forum selection, choice of law, and alternative dispute resolution (ADR);
• Training on potential litigation holds and attorney-client privilege;
• Help with ADR measures before litigation; and
• Strategy assistance.

Contact a San Antonio Business Litigation Attorney

Having strong legal representation is pivotal for businesses from the very beginning. If you have concerns about current or potential future business litigation, contact a Kirker | Davis LLP business litigation attorney to schedule a meeting today.