When to Hire an Attorney for Business Disputes

Disputes are an inevitable part of running a business. They can occur between a company and another business, a customer, a supplier, an agent, and so on. If not resolved or mitigated early enough, business disputes can cause reputation damage, loss of revenue, instability, and overall stress for the owner.

Disputes, however, don’t have to be detrimental to your business. You can avoid the adverse effects with the right information and legal advice. A business dispute attorney can review your dispute and recommend the best path forward to avoid lengthy court proceedings when possible. This article explains some common scenarios for bringing in an attorney for business disputes, how to determine whether to hire one, the benefits of a professional lawyer, and important tips to consider when hiring.

When to Get Help From a Business Dispute Lawyer

Business dispute lawyers handle a variety of conflicts that may occur in different stages of a business, whether during formation, contract signing, onboarding shareholders, profit sharing, or dissolution. Some common disputes you may need to hire an attorney for include: 

• Breach of contract
• Shareholder and partnership disputes
• Business divorce
• Fraudulent customer chargebacks
• Intellectual property disputes
• Contract review and negotiation
• Frozen reserve funds
• Employee/employer disputes
• Debt collection and late payments 
• Securities litigation
• Regulatory and compliance challenges
• Merger and acquisition disputes

Do You Need an Attorney to Solve Your Business Dispute?

For minor disputes, business owners may be able to work it out with the other party. Still, even then, it’s in your best interest to consult an attorney for professional legal advice. Numerous other factors regarding the dispute at hand can influence whether to hire an attorney. 

Your Legal Knowledge Regarding the Matter

The legal side of running a business can be complex even for the most successful business owners. Even with some legal knowledge of the issue, dispute resolution requires other skills and special training. It’s also common for business owners to become emotionally involved because they’re party to the conflict. Bringing in knowledgeable and unbiased attorneys with experience settling disputes in your specific industry can be beneficial. 

When the Dispute Needs Litigation

A business conflict requiring court proceedings to resolve is a sure sign that you need legal representation. Litigation introduces more legal complexities and can drag a matter on for months or years. The other party is also likely to hire an attorney if a dispute goes to court. Having an experienced attorney by your side ensures you have all the resources you need to move forward without worry.

The Time You Have to Attend to the Dispute

As a business owner, your schedule is likely full of many aspects of running a successful business. Taking on a dispute on your own will require you to carve out time from your busy schedule, which may leave other equally important tasks unattended to. Partnering with an attorney gives the matter the attention it deserves without sacrificing your business time.

The Likelihood of the Dispute Escalating

Business disputes don’t always start as heated conflicts. In some cases, both parties may be reasonable enough to actively work on finding a compromise for the issue. But in other instances, the likelihood of a dispute escalating and causing more damage is evident from the beginning. 

Some warning signs include negotiations coming to a standstill, deteriorating communications, legal threats, and parties becoming hostile or abusive. If you see these red flags, consider hiring a business dispute attorney early on to avoid an escalation.

Minor Business Disputes That Recur

Business owners may resolve minor disputes through negotiation, mediation, or arbitration without involving a lawyer. However, if a particular issue keeps recurring or remains unresolved for long, it might be time to bring in a legal professional. An attorney can help find a permanent solution to the problem or find ways to manage recurring disputes more efficiently. An example of a recurring dispute is contentious customer chargebacks.

The Benefits of Hiring an Attorney for Business Disputes

Business disputes can become complex or escalate more quickly than anticipated. It’s best to consult and ultimately hire an attorney early on before the dispute causes a lot more damage. The benefits of obtaining a business dispute attorney include the following.

Saving Money

Business owners may be reluctant to hire a dispute attorney because of the associated costs, but this is often a mistake that ends up costing more down the road. A lawyer can help disputing parties come to an agreement and end their dispute early on, thus avoiding lengthy and expensive lawsuits. You’re also less likely to make other costly mistakes, such as signing a release form unknowingly, when you have professional legal support.

Protecting Your Business’s Interests

When you hire an attorney for a business dispute, their goal is to advocate for what’s best for your business. Whether they’re negotiating merchant processing agreement terms, mediating a dispute with an agent, or litigating a breach of contract in court, an attorney will work toward a solution that protects and maximizes your business interests. While a business owner also understands and can fight for their interests, a lawyer has the added advantage of years of experience and specialized legal knowledge.

Bringing Legal Experience and Expertise

A business dispute attorney has practical experience helping other business owners like you navigate conflicts. They have tried and tested numerous methods of dispute resolution, which makes it easy to apply the same knowledge in your case. They also understand the different state and federal laws that affect your industry or the dispute in question, and how to apply them to the benefit of your business.

Ensuring Compliance

The business dispute resolution process is governed by various regulations set by both state and federal authorities. Failure to comply with these rules makes any affected agreement null and void, and parties may have to repeat the process. The dispute in question may also involve additional laws that parties must abide by when coming to a resolution. For instance, the rules surrounding a merger and acquisition dispute differ from those involving a TMF MATCH listing dispute. An attorney understands the ins and outs of these laws and can advise business owners accordingly to avoid compliance issues. 

Access to Expert Witnesses and Specialists

Lawyers, especially those with years of experience, have a vast network of specialists whose expertise can be useful in your dispute resolution process. Testifying expert witnesses can strengthen your business dispute case by providing expertise-backed opinions to prove your claims. Non-testifying expert witnesses offer their knowledge in an advisory capacity to support attorneys as they prepare and build a case. 

Navigating Commercial Litigation

A business dispute lawyer can guide and support business owners through the complexities of commercial litigation in case they go to court. This includes recommending ways to resolve disputes more quickly and efficiently, and representing the business or owner in court to strive for a favorable outcome. 

What to Look for When Hiring a Business Dispute Lawyer

The attorney you hire can make or break your chances of a dispute resolution. Here are a few things to look for when choosing a lawyer to work with:

• Experience: The right business dispute attorney will have tangible experience in dispute resolution and a high success rate to back this up. The attorneys at Global Legal Law Firm have been practicing business litigation since 2008 with impressive case results to show for it.
• Expertise: The attorney must also have the expertise that specifically matches your dispute area. This ensures they understand the particular laws and are well-informed to represent you in the resolution process. It’s also important to find a lawyer with expertise in court trials because you may end up in litigation. 
• Reviews from previous clients: One of the best ways to learn more about the lawyer is by looking up what previous clients have to say about their services. Positive feedback indicates high-quality legal services and a good business reputation, while negative reviews can be a red flag.
• Communication skills: Finally, you need a business dispute attorney who’s responsive and available to offer updates or answer your questions. Good communication skills make for an easy time working with the lawyer, while poor communication is a warning sign for a problematic partnership. 

Speak With the Attorneys at Global Legal Law Firm

A dispute can have devastating effects on your business if not resolved early enough. The skilled attorneys at Global Legal Law Firm are ready to get to work for your business, whether through mediation, negotiation, or even litigation in court. Protect your best interests by partnering with business dispute attorneys with more than a decade of experience supporting other business owners to navigate commercial litigation both locally in San Diego, in Boca Ration, and nationally. Call us today at (858) 463-5985 or request a consultation with one of our attorneys.