What Is the Difference Between Business Litigation and Commercial Litigation?

While the words business and commercial are often used interchangeably in the business world, distinct differences exist between business litigation and commercial litigation. Understanding these differences can help a company choose the right law firm when litigation is necessary.

What Is Business Litigation?

Business litigation focuses on federal and state laws that deal with setting up and running a company. These lawsuits may deal with regulatory issues, so litigation may involve a business and a state or federal governmental body. A large part of business law centers around how workers are affected by a business, dealing with protocols for hiring, firing, and workplace safety.

Business law also deals with tax laws. Business litigation may be necessary if a business fails to meet the law’s tax requirements. Product deliveries also fall under business law.

Business litigation can involve parties such as a company and its stakeholders. Business law comes into play when there is a dispute among shareholders and directors.

Companies may also turn to experts in business law to help manage legal aspects and act as watchdogs, allowing executives and managers to spend their time and energy focusing on a business’s day-to-day operations and processes. While businesses can put safeguards in place to ensure compliance with regulations, legal intervention is sometimes necessary. That’s where business litigation again comes in.

Some examples of reasons business litigation may be necessary include:

  • Breach of fiduciary duty.
  • Compliance with hour and wage regulations.
  • Employment issues including discrimination, harassment, or wrongful discharge.
  • Environmental requirements.
  • Federal and state tax laws.
  • Lawsuits that come from insurance policies.
  • Partnership disputes.
  • Whistleblower complaints.
  • Workplace safety regulations.
  • Workers’ compensation.

What Is Commercial Litigation?

Commercial law is sometimes considered a subcategory of business law. Commercial law typically refers to administration for corporations, LLCs, sole proprietorships, and more. Commercial litigation, therefore, focuses on contracts and transactions. Commercial lawsuits may focus on commerce issues, dealing with disputes. or other issues that come out of trade.

Examples of common commercial litigation topics include issues related to:

  • Buying.
  • Commercial paper.
  • Contract terms and conditions.
  • Intellectual property.
  • Leases.
  • Providing services.
  • Sale of goods.
  • Secured transactions and other transactions.
  • Security of a business, including internal and external factors.
  • Zoning of a business.

Regulations and Statutes Governing Business Litigation and Commercial Litigation

One key difference between business litigation and commercial litigation is the regulations or statutes that govern each. Federal and state regulations characterize business litigation, covering various aspects involved with setting up and operating businesses. State and federal regulations govern a wide variety of broad issues, including:

  • Employment and wage compliance.
  • Environmental protection.
  • Shareholder concerns.
  • Workplace safety.

The Uniform Commercial Code, or UCC, regulates commercial litigation. Originally, the UCC was developed to assist businesses in managing evolving legal requirements. The UCC was also developed to address differences in individual state laws. However, states have continued to customize this code, so those seeking commercial litigation support should look for a commercial law firm that is familiar with the state or states where the company conducts its business.

The experienced attorneys at Cokinos | Young can help. Contact us today!