Business Disputes: What Are the Common Types That Your Business Could Become Involved in?

Running any business—large or small—can be complex and involve many different contracts, business relations, employees, and customers. Even if a business owner tries to avoid problems, at some point there will most likely be a business dispute.

Common Types of Business Disputes

Understanding the main types of disputes that your business could become involved in can help you avoid them and develop strategies to resolve the disputes before the problems escalate into extensive litigation. Some common business disputes include:

  • Breach of contract. With the numerous contracts with employees, customers, suppliers, and more that businesses enter into, it should not be surprising that breach of contract disputes are common. Sometimes arguments arise over payments or what the terms of the contract mean if they are incomplete, ambiguous, or unclear. In other cases, disputes result from the obligations of the parties or performance of the terms of the contract. Contracts for larger businesses and corporations can be even more detailed and complex, requiring extensive litigation when disputes arise.
  • Partnership disputes. A successful partnership requires communication and cooperation. Unfortunately, many different conflicts can arise between partners about the operations of the partnership that can escalate into even larger disputes and inabilities to work together as a team. Conflicts often revolve around changes in leadership, the direction of the business, or financial matters.
  • Business to business disputes. Sometimes disputes arise when one business perceives another business’ actions as unfair or deceptive. Claims of unfair competition, predatory pricing, monopolizing the market, and collusion between businesses are a few of the legal disputes that can arise.
  • Employment disputes. Businesses must comply with many state and federal laws prohibiting discrimination based on sex, age, disability, marital status, and other protected statuses. Disputes can arise with employees regarding employment discrimination and wrongful termination when the employee argues that these laws have been violated. If the employee has an employment contract with the employer, arguments can develop over whether the terms of the contract are being followed. In addition, businesses sometimes get involved in disagreements over salary, wages, or benefits, such as maternity leave.
  • Covenants not to compete. Some employers require employees to sign agreements not to compete by engaging in certain business practices for a length of time after their employment ends. Disagreements can arise over whether a former employee is violating the terms of the contract.
  • Breach of fiduciary duty. Some individuals and parties, such as trustees, corporate directors, financial advisors, and retirement plan administrators, have a greater duty of loyalty and trust to the parties they are working with. If they are perceived to be breaching this duty, the injured parties could bring a breach of fiduciary duty claim.
  • Insurance disputes. Disputes can arise between a business and its insurance company when the insurance company does not pay a claim or defend the business when required to do so under a duty to defend clause in the insurance contract. Businesses can also have claims with a negligent party’s insurance company if the business has to file a claim and it is denied, or the insurance company refuses to enter into a fair settlement.
  • Real estate disputes. Businesses often rent or buy property for their business operations. These agreements can be very detailed as to the parties’ duties, and disputes can arise as to the obligations of the parties.

Let Our Business Dispute Attorneys Help Your Business

Are you involved in a business dispute? The experienced legal team at Greenspun Shapiro PC understands that you want to resolve your matter quickly and successfully. We can provide you with an honest and objective assessment of your legal matter, discuss alternatives to litigation, and vigorously defend your interests in court when necessary. To schedule a free consultation, call our office or start an online chat today.