Commercial Disputes: When Should You Hire an Attorney?
Commercial disputes can threaten business reputations—and, in some cases, they can threaten businesses themselves. As a result, when these disputes arise, an informed and strategic approach is critical. In some cases, targeting an amicable resolution will be in the best interests of all parties involved. However, in other cases, pursuing arbitration or litigation may be necessary. With this in mind, when should you hire a Miami commercial litigation attorney in response to a commercial dispute?
7 Important Considerations for Resolving Commercial Disputes
Here are some important considerations:
1. Resolving Commercial Disputes Amicably Requires Action Before Escalation
While it is possible to resolve commercial disputes amicably in many cases, it is important to take proactive steps to target an amicable resolution before a dispute escalates. Once a dispute escalates, it becomes increasingly difficult for both parties to come to the negotiating table, and options that might have been previously available may no longer be viable.
With this in mind, it is rarely best to take a “wait and see” approach—at least not for long. It can be beneficial to have an attorney on standby, and, as discussed below, there are many ways an experienced attorney can help before a dispute escalates as well.
2. It Is Important to Ensure You Have an Accurate Understanding of Both Parties’ Rights
One way an attorney can help before a dispute escalates is by ensuring that you have an accurate understanding of both parties’ rights. When dealing with a commercial dispute—especially one with an important client, vendor, or business partner—you do not want to make assumptions or unwarranted claims that lead to unnecessary consequences.
Along with reviewing the terms of the relevant contract (if any), your attorney can also assess both parties’ rights under any pertinent statutes or common law. This will allow you to make informed decisions based on all of the claims and defenses your company has available.
3. Your Attorney Can Help You Pursue a Resolution That Avoids the Need for Litigation
While commercial litigation attorneys represent their clients in court when necessary, they spend the majority of their time helping their clients target out-of-court resolutions. The vast majority of commercial disputes do not go to court, and an experienced attorney will be able to help you target a resolution that avoids the need for litigation—provided that it is in your company’s best interests to do so.
Importantly, your attorney will also be able to help document the terms of any settlement that is reached. If resolving your dispute involves renegotiating the terms of an existing commercial contract, your attorney can assist with amending the relevant contract as well.
4. Commercial Contracts Often Require Mediation or Arbitration (or Both) in Lieu of Litigation
Most commercial contracts include dispute resolution provisions that require the parties to pursue mediation or litigation (or both) instead of going to court. Your attorney will be able to review the relevant dispute resolution language and explain its implications for the dispute in question.
Along with requiring mediation and/or arbitration, commercial contracts often include additional dispute resolution provisions. These include provisions regarding governing law, jurisdiction, and attorneys’ fees, among others. These provisions can potentially have significant legal and practical implications for the dispute resolution process, so it will also be important for you to understand how these provisions come into play under the circumstances at hand.
5. The Terms of the Relevant Contract May Limit the Remedies that Are Available
Another important factor to consider is that the terms of the relevant contract (if any) may also limit the remedies that are available. Commercial contracts often include damage caps and other provisions designed to mitigate the parties’ downside risk in the event of a dispute.
With that said, indemnification clauses, mandatory insurance requirements, and other types of liability-shifting provisions can also provide means of financial recovery without the need to litigate against a customer, vendor, or business partner. As a result, it will be important to know if the relevant contract (if any) includes these types of provisions as well.
6. The Terms of the Relevant Contract May Limit How Long You Have to Pursue Legal Action
Another way companies often mitigate risk when negotiating commercial contracts is by limiting the time their counterparties have to pursue legal action. These contractual “limitations periods” are often significantly shorter than the statute of limitations that would otherwise apply.
If your company has only a limited amount of time to take legal action, this is a critical fact that you also need to know. An experienced Miami commercial litigation attorney will be able to identify any relevant time limits and take appropriate action to protect your company’s legal rights—while also making clear that your company is open to pursuing an amicable resolution if warranted.
7. An Attorney Can Help You Make Informed and Strategic Decisions About Your Next Steps
Regardless of the current status of your company’s dispute, an experienced Miami civil litigation attorney can help you make informed and strategic decisions about your next steps. Your attorney can help you decide how best to approach the dispute under the circumstances at hand, and your attorney can help you develop a strategy for moving forward—whatever that may entail.
In all cases, commercial disputes require a tailored approach that is specific to the circumstances at hand. By engaging an experienced Miami civil litigation attorney early in the process, you can feel confident in your decision-making, and you can make decisions with your company’s long-term best interests in mind.
Discuss Your Options with an Experienced Miami Civil Litigation Attorney
Is your company facing a commercial dispute in South Florida? If so, we can help you make informed decisions about how to move forward. To discuss your options with an experienced Miami civil litigation attorney at Gonzalez Law Offices, P.A. in confidence, please call 305-676-6677 or contact us online today.