Protect Your Los Angeles Firm from Business Litigation

common Los Angeles business litigation types

Protect from Business Litigation with Prevention

You put a lot of hard work into running your business and know the difficulties of managing a company in Los Angeles. You also know that business litigation will bring you extra stress, problems, and cost. But did you know that the best way to handle lawsuits is to prevent them from happening in the first place?

Here are some of the most typical disputes that become Los Angeles business litigation and some tips on how to avoid them.

1. Disputes Among Business Partners

Many companies in the Los Angeles area are owned by more than one person. A company may have multiple investors, some of whom may be involved day-to-day and others not. Some owners may contribute their “sweat equity” to the business, while others may only contribute money. When things are going well for the company, owners may get along fine, and there may be few disputes. Often these businesses are LLCs, with minority members providing funds and managing members operating the business.

Disputes between owners can arise for any number of reasons. If the business fails to meet planned milestones, the owners may begin to point fingers at each other. Sweat equity owners or managing members who work in the business daily may expect the minority members to contribute more money to help the company. The minority members who provide financing may blame the managing members for the business’s poor performance. One or more business members may want to exit the business and get paid for their share of the company.

Arbitration can generally resolve these disagreements quicker than litigation and offers the benefit of confidentiality and a final decision that can’t be appealed. However, arbitration is only an option if the business partners agree to arbitrate their disputes. A business lawyer can help guide the parties regarding the pros and cons of arbitration.

Lawsuits are another way to resolve disputes. An experienced business attorney will typically recommend trying to negotiate a solution before filing a lawsuit. But when business disputes aren’t resolved through negotiation, filing a lawsuit can be a powerful way to ensure that the other side takes the matter seriously and that your case will be heard. Working with a business lawyer who has courtroom experience in disputes involving business owners is in your best interest.

2. Commercial Real Estate Disputes

Several different types of disputes arise that relate to commercial real estate in Los Angeles. Landlord-tenant issues are very common. A business may have problems with a landlord maintaining a building or providing promised services. A landlord may have problems with a business tenant violating its lease terms. In these cases, it helps to have the assistance of an experienced real estate attorney.

Other types of real estate disputes can arise when the parties involved in a real estate-related business or transaction can’t agree on an important issue. Members of a joint venture involved in a real estate project may disagree about the project’s direction. Or the buyer in a real estate sale may try to back out of the deal for what the buyer thinks is a good reason; the seller may disagree. When these kinds of disputes arise, retaining a seasoned real estate or business law attorney can make all the difference in the result.

3. Breach of Contract Lawsuits

Breach of contract lawsuits can happen when a business and its customer, supplier, or service provider fail to do what they said they would do. For example, a business might sue a supplier for late delivery. A supplier might sue a business for missed payments. A customer might sue a business because it did not deliver a service as promised.

Complicated contracts that are hard to understand and don’t reflect how the parties work together can cause misunderstandings. These contracts are a common cause of contract disputes. It can be easy for one party to unintentionally break a term with this kind of contract.

To prevent a breach of contract lawsuit, a business needs a clear and easy-to-understand contract that is based on how they work with the other party. A business lawyer can help create this kind of agreement.

Contact a Los Angeles Business Law Attorney Today

If you own a business, it is important to think about the different ways you might end up in a lawsuit. If you find yourself in a business dispute, you don’t have to figure it out alone. It’s in your best interest to consult an attorney for advice as soon as possible.

Ezer Williamson Law has deep experience with business and commercial law matters, both transactional and litigation. We can help protect you and your company at the onset or if the need for litigation arises. Read about some business litigation cases and matters we have handled here.

Schedule an appointment with Ezer Williamson Law to discuss your California business litigation concerns.

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