January 16, 2023
Business entities do everything that they possibly can to avoid problems, and to conduct their business operations in a profitable manner. Sometimes, however, disputes arise in the business context between other businesses, customers, shareholders, officers, directors, and others. When business disputes arise, the first step is usually to see whether or not the dispute can be resolved amicably. In a perfect world, all business disputes would be resolved without the need for court intervention. Sadly, however, this is not always the case, and business litigation may become necessary. In business litigation, the parties to a dispute call upon the court to resolve a pending dispute.
Litigation in the context of a business may involve disputes among shareholders (or between shareholders and the officers/directors of a corporation), breach of contract, breach of a corporate director/officer’s fiduciary duty, business defamation, business and IP counseling, and internet and technology law. A Birmingham business litigation attorney at Maxwell Goss Law can explain all of your legal options when it comes to resolving a pending business dispute. We can first assist you with attempting to resolve your business dispute in an amicable manner. If that does not work, we can help you litigate your dispute through the court system to a favorable conclusion. Give us a call to find out more about how we can help you with all of your business litigation needs.
Shareholders have a legal interest in a business entity. In some cases, disputes may arise between shareholders of a corporation and the officers or directors of the corporation. At other times, disputes arise directly between the majority shareholders of a corporation and the minority shareholders. For example, the majority shareholders may be abusing their power and may not be acting in the corporation’s best interests. When these types of disputes arise, litigation may become necessary.
In order for a business contact to be enforceable (either orally or in writing), there must be an offer by one party, acceptance by the other party, and some form of consideration (usually in the form of money) exchanged. A party may materially breach (or violate) one or more provisions of a business contact, and when a dispute arises, the court may be called upon to resolve the dispute.
The directors and officers of a corporation owe certain fiduciary duties to the corporation. Those fiduciary duties include the duties of loyalty, good faith, and fair dealing. When a corporate director or officer violates one or more of these fiduciary duties, then a court may be called upon to sort out the dispute.
In order for a business to be profitable, it is important that the business have a good reputation in the community. A defamatory statement, however, can ruin that reputation and may lead to serious negative financial consequences for the business. Defamation occurs when an individual or business entity makes a false statement to some third party, resulting in damages.
Business counseling services are extremely helpful when deciding what type of business to form or acquire, when understanding how to comply with applicable state and federal regulations that may be in place, and when dealing with disputes that involve patents, copyright infringements, and intellectual property disputes.
When conducting business online, it is important that businesses comply with various regulations put forth by the Children’s Online Privacy Protection Act (COPPA) and the Federal Trade Commission (FTC). Failing to do so can result in fines and other sanctions. Moreover, businesses must take measures to promote online security and take prompt action when that security is breached.