What Are the Stages of Business Litigation?

Business litigation is the process of resolving business disputes by going to court. Some of the common issues that lead to business litigation include employment disputes, contract disputes, shareholder disputes, consumer complaints, and partnership disputes. Whether you are involved in business litigation as the complainant or defendant, business litigation can be a complex and lengthy process. It is best to work with a business litigation attorney. Business litigation cases involve several steps, and a skilled attorney can help at every stage of the business litigation process. In this article, we go over the stages of business litigation.

Disclaimer: This article is for informational purposes only. The information in this article should not be taken as legal advice. For legal advice, consult an attorney.

As mentioned already, business litigation involves several steps. The specific steps may vary based on the jurisdiction and specifics of the case. That said, the following are the general steps involved in business litigation in California;

Before the business litigation process begins, the first step is to conduct investigations. This entails determining if there is a basis for a lawsuit and gathering evidence.

After determining there is a basis for a lawsuit and collective evidence, the next step is the plaintiff filing the complaint with the appropriate court. In the complaint, the complainant should state clearly what legal harm they have suffered and the relief they are pursuing. Normally, people initiate the business litigation process to recover financial damages. Once the complaint has been filed, the lawsuit can begin.

Next, the defendant must be served with the complaint. A process server or an authorized third party can serve the defendant with the complaint.

After the defendant has been served with the complaint, they have a short period of time to respond. A defendant is supposed to respond by filing an answer. In the answer, the defendant addresses all the allegations against them. A defendant can also choose to include counterclaims or affirmative defenses in their answer. Affirmative defenses include lack of jurisdiction and statute of limitations.

If the defendant fails to file a response within the specified time frame, the claimant can request a default judgment. If this request is granted, the court may automatically rule in favor of the plaintiff.

This stage entails the defendant obtaining information from the claimant, and vice versa, regarding facts pertaining to the dispute at issue. The discovery stage is quite crucial to both parties. During this stage, documents, written interrogations, depositions, and other evidence are gathered.

The parties can decide to settle their case without going to court. Parties may even choose to engage in mediation to resolve the dispute. Mediation is a process where disputing parties meet with a neutral third party who helps them communicate and negotiate.

If the case cannot be settled, it will proceed through all preliminary pretrial matters, including evidentiary objections, opposing motions, and replying to motions.

If the case proceeds to trial, both sides will present their case in front of a judge or jury, and the judge or jury will make a decision based on the evidence presented.

If you are involved in business litigation and are looking for a qualified attorney to help you, contact our business litigation attorneys at SAC Attorneys LLP.