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The business litigation process

On Behalf of | Jun 28, 2022 | Business Litigation

The use of litigation is rare for most businesses and individuals, but when it does happen, the process can be long and end in a court trial. Arbitration is an option for avoiding a court trial for your company in Tennessee.

Business litigation experts

Business litigation remains rare because large to medium-sized organizations use legal experts skilled in avoiding litigation problems. Smaller companies can work with independent litigation experts to handle specific legal issues.

How litigation works

The plaintiff faces the burden of proving that the defendant is to blame for their problems. A plaintiff files the initial complaint with a court. Defendants receive the paperwork from the court to start the litigation process. Legal representation is not required, but representing yourself should be carefully considered. The court case begins with motions filed by both parties about how and where the case will move forward.

Arbitration is an option

Arbitration is an option for avoiding a court trial. During the arbitration, the defendant and plaintiff work to negotiate a settlement for their dispute that suits both parties. The settlement needs to be approved by the court to bring the business litigation to a close.

Types of business litigation

Litigation can begin for different reasons. Among the reasons why an entrepreneur or large business can head to court include claims made by disgruntled employees. A breach of contract claim is a common form of business litigation. Business partners and shareholders resort to litigation when they feel a company is heading in the wrong direction.

When it’s starting to look like your business may become involved in litigation, it’s important to weigh your options so that you can attain an outcome in the most low-stress and financially responsible way possible.