Here at Prosperity Law LLP, we have commercial litigation solicitors in Manchester and Liverpool who take the time to understand our clients’ business first before providing proactive, tailored legal advice.
Our clients know that we will use our experience and commercial and legal acumen to achieve a speedy and cost effective resolution to the dispute wherever possible. To achieve this, we engage in proactive dispute resolution techniques.
Sometimes decisive action is required and immediate court action is the only available avenue. In such circumstances, our Commercial Litigation Solicitors advise our clients of the consequences of taking such action including the potential costs and when instructed vigorously litigate the dispute to achieve the desired result.
We are committed to helping your business grow, and by applying the law from a commercial perspective you can be confident that our litigation solicitors will achieve the most cost-effective result for your company.
What is Commercial Litigation?
The field of commercial litigation tends to fall into one of three categories:
When writing up a contract, business owners work to cover all bases and acknowledge any feasible eventuality when specifying individual rights, responsibilities and duties surrounding a particular job, position or project. Of course, as such a wide range of possibilities exists within all areas of business, it is understandable that oversights and misinterpretations within contractual agreements occur fairly regularly. At such times, all parties covered by the contract in question must work toward an amendment that is as beneficial and fair as possible. This can often prove more difficult than it sounds, particularly if the contracted work or partnership has already begun. In cases where there is a contract dispute that cannot be resolved informally, contacting a commercial litigation solicitor is always the best approach. Whether the contract covers an agency agreement, a distribution agreement, a set of payment obligations, or an arrangement surrounding the delivery or hiring of goods, positive resolutions can be found.
2. Partnership Disputes
If, as with many businesses, the effective cooperation of a partnership is vital for the successful running of your company or brand, then it is exceptionally important that you are prepared for the possibility of a partnership dispute. Experienced specialists who are heavily invested in the future of your business are highly likely to struggle with contrasting views and priorities on occasion and – particularly if they are partners with equal shares and responsibilities – this can cause awkward stalemates, with production grinding to a halt until the dispute is solved. So, what can be done to untangle this issue? A talented commercial litigation lawyer will be capable of sensitively and intelligently working with all parties towards a positive resolution, whatever the nature of the business and the matters causing any kind of schism.
3. Shareholder and Corporate Disputes
Directors and shareholders are an absolutely integral part of the management structure of a business, and disputes between them can have a huge impact on the company’s future direction and success. Therefore, it is imperative that relationships between groups of shareholders and amongst the board of directors continue in a positive light as far as is possible. Naturally, however, groups of talented, high-powered individuals working together will not always share the same opinions and ambitions, and, while many disagreements can be settled after constructive discussion, there are times when matters may become too sensitive or complex. Of course, there are many tricky scenarios that could arise from a major lack of consensus, including the possible eventuality in which one or more shareholders find that they now desire to leave the company but the rest find themselves financially unable to buy out the released shares. However convoluted or difficult matters may become, though, a commercial litigation specialist exists who will have experienced numerous similar situations and will be able to offer extremely valuable assistance and advice.
Considerations before starting litigation
If you’re thinking about taking the first steps towards litigating, preparation is everything. While it is very tempting to try and get an unpleasant situation “out of the way” as quickly as possible, rushing into matters may leave you exposed to losing your case or finding yourself in a position where your claim, while technically successful, is unenforceable. Therefore, it is highly recommended that you make your individual position as strong as possible before you begin. Here are a few steps you should take before obtaining legal assistance:
- Consult all contracts and other documents that could be considered legally binding
Explore all texts connected to the relationship between your business and the potential defendant. Work to uncover any use of language that could be misinterpreted or considered ambiguous. If a contract has been changed, ensure that you find a copy of the correspondence you sent to the potential defendant notifying them of this.
- Retain paperwork
As soon as you begin to consider litigation, the onus is on you to collect evidence that will support your claim. In order to give yourself as much material as possible, and to protect yourself legally, you should seriously consider instructing the employees and management of your company to halt in the destruction of documentation, whether said destruction be by the shredding of papers or the deletion of electronic files. If invoices are processed and then disposed of, and you’re fighting a case against a contractor that is charging in full but not meeting their quota, for example, you may lose vital examples of the ongoing problem. Make sure you also make a diary of relevant interactions with the potential defendant dating as far back as possible, being sure to include times, dates and direct transcripts or original copies of letters and emails, and try not to allow new generally accessible documents to be created that might harm or expose your position within the case.
- Freezing orders
You may swiftly need to ensure that you can prevent certain actions from taking place while legal procedures are ongoing. Therefore, it would be an intelligent move to apply to the court for a “freezing order”, which might prevent the potential defendant from destroying or removing evidence, or relocating to a different area of jurisdiction in the interim to avoid charges.
- Potential outcomes
It’s vital to think about limitation periods. There is no point in moving ahead with a case if the relevant time to apply for legal action has lapsed. Commonly, you must bring a claim before court within six years of the first dispute arising, or all information is legally void and the case cannot move forward. If you find yourself comfortably within this period, you then need to consider how likely it is that your litigation will be successful to the degree that you desire? Not only do you need to think about the strength of your own case, but you will also need to consider the defendant’s ability to pay the damages you are requesting. If they have insufficient assets or insurance, it may be that no court will be able to enforce a claim you have successfully made.
How we can help with Commercial Litigation
If you need to contact a commercial litigation specialist, simply get in touch with Prosperity Law today on 0161 667 3697 for more information about how they can assist you, from the first steps to final advice regarding how to prevent similar issues in the future.
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