What are some common business disputes California companies face?

One of the benefits of owning your own business is that you can call your shots when running it. That doesn’t mean that you won’t face obstacles that you have to overcome along the way, however.

Some business legal disputes tend to crop up more than others. Consider the following problems you may encounter:

Breach of contract issues

A contract is an agreement between two parties whereby they each agree to exchange services or a product for a pre-designated amount of money. A customer or employee’s violations of contract terms is the main reason businesses resort to litigation. You may also need to sue former employees for a breach of contract if they violate a non-compete, non-disclosure or work agreement.

Executive and board officer liability

There’s been an uptick in the filing of cases against upper management in recent years for failing to operate in the best interest of the company that they represent. A breach of someone’s fiduciary duty is serious. You, as a company’s owner or another interested party, may find yourself needing to file a lawsuit to protect your company’s reputation.

Employment disputes

Employment disputes are common and take place in many workplaces daily. While that’s the case, when a current or former employee decides to wage a lawsuit against your company, the battle they start can quickly become contentious if the circumstances are right. You must keep detailed documentation about any personnel matters, especially if it relates to discrimination, sexual harassment, wages, leave and other potentially contentious issues. All of this will come in handy if you need to hire an attorney to advocate for you.  

Partner and shareholder disputes

Disputes that arise most often between parties in a partnership involve a breach of fiduciary duty, claims against management or boards of directors, oppression of minority shareholders and problems that arise when attempting to dissolve a business relationship.  

How to address disputes with your business

You must be able to fairly and swiftly resolve business disputes that arise if you want to protect your California company’s integrity and future growth. An experienced advocate can offer invaluable guidance and direction. To learn more about our services, please continue reviewing our website.