Business Lawsuits 101: What to Expect in a Commercial Litigation Case

Written By Jake Davis

Part of the cost of doing any business is the possibility of being involved in a dispute with a contractor, customer, employee, supplier, or another party. Disputes can arise anytime and for countless reasons. Business disputes can be costly and time-consuming. When these disputes escalate into lawsuits, the stakes can get high. Commercial litigation can risk your business’s reputation, finances, and future trajectory. But what exactly happens when your business is involved in a litigation case? At Cali Law, we understand how complex and overwhelming the commercial litigation process can seem, especially if it is your first time being involved in litigation. However, by understanding what to expect, you can make well-informed decisions, protect your interests, and put yourself in a position to achieve the best possible outcome for your business. 

What is Commercial Litigation?

Commercial litigation involves disputes between businesses or between businesses and other individuals or government agencies. Often, commercial litigation involves the resolution of the following matters;

  • Breach of contract allegations

  • Claims of unfair practices

  • Disagreements between partners

  • Disagreements among shareholders

  • Intellectual property infringement

  • Business torts, such as tortious interference, fraud, and unfair competition

  • Employment-related disputes

The above is not an exhaustive list of the business disputes that can be resolved through commercial litigation.

Commercial cases often involve large financial stakes and complex matters. That is why having an experienced business law firm is vital. 

Understanding the Stages of a Commercial Litigation Case

Every case is unique. But usually, the following are the steps involved in the commercial litigation process in Pennsylvania;

1.  Pre-Suit Negotiation and ADR

The commercial litigation process in Pennsylvania usually starts with the disputing parties trying to resolve the dispute through communication and negotiation, often with the help of legal counsel. You can also consider other alternative dispute resolution (ADR) methods, such as mediation or arbitration. ADR can help save time, reduce costs, and preserve important business relationships.

2.  Filing the Lawsuit

If the dispute cannot be resolved through negotiation or another ADR method, the plaintiff (the party bringing the case) can file a lawsuit in court. The complaint must outline the plaintiff’s claims and the relief they are seeking. Upon receiving the complaint, the defendant must file an answer addressing the allegations. The defendant can either admit, deny, state a lack of knowledge regarding the claims, or even file a counterclaim.

3.  Discovery

This is a critical phase of the commercial litigation process. It involves the parties exchanging information through,

  • Requests for production of documents

  • Depositions

  • Interrogatories

The discovery phase can be lengthy and complex because of the meticulous attention to detail and extensive review.

4.  Pre-Trial Motions

Before the trial, either party can file pre-trial motions to address various issues. Common pre-trial motions include;

  • Motions for summary judgment (if there are no genuine issues of material fact)

  • Motions to dismiss (if a case lacks merit or jurisdiction)

  • Motions in limine (seeks to exclude specific evidence from trial)

5.  Negotiations and ADR

Even after a lawsuit has been filed in court, parties can negotiate and settle the case. Negotiations can happen at any point before the court makes its decision.

6.  Trial

If the case cannot be settled, it advances to trial, where both sides present their case through opening statements, witness testimony, cross-examinations, and closing arguments. In a PA commercial litigation case, plaintiffs have the burden of proving their case by a preponderance of the evidence. This standard requires proving that there is more than a 50% chance that the claims are true.

7.  Verdict and Post-Trial Motions

Once both sides have presented their cases, the judge or jury deliberates and renders a judgment. The court may award financial compensation or other relief if the plaintiff succeeds. If the decision favors the defendant, the case is dismissed. Irrespective of the verdict, the plaintiff and defendant can file post-trial motions, including motions for a new trial or to alter the verdict.   

8.  Appeals

If you or the other side does not agree with the judge’s or jury’s decision, filing an appeal may be an option. Appealing a case means asking a higher court to review the lower court’s decision for legal errors. This means you cannot appeal a verdict just because you are unhappy with it. A legal error must have occurred that justifies the appeal.

How Long Does the Commercial Litigation Process Take?

A common question people ask when a business dispute arises is how long the commercial litigation process lasts. All cases are different, meaning the duration of a case can vary significantly. Some cases are resolved in months or less, while others take years. Some of the factors that can influence how long it takes to resolve a business dispute include;

  • The complexity of the legal issues

  • Amount of discovery required

  • Court schedules and backlogs

  • The disputing parties’ willingness to cooperate

Preparing for Commercial Litigation

Here are some steps to take to prepare yourself and your business for commercial litigation;

  • Document everything, including contracts and emails

  • Understand your goals. For example, do you want your case settled fast or to get the best possible outcome?

  • Maintain professionalism, as everything you say or do can be used as evidence against you

  • Hire an experienced business litigation attorney

Commercial litigation involves high stakes. Your business’s name, finances, and future may be at risk. Having knowledge and preparing is crucial. Take time to understand the litigation process, gather documentation, and have a clear plan for handling things. While commercial litigation can be complex, having an attorney who understands business law and has experience handling business litigation cases can help protect your business’s interests. At Cali Law, our team has more than 40 years of combined experience dealing with;

and many other types of business disputes. We serve businesses throughout Pike, Wayne, Monroe, Wyoming, Luzerne, Bradford, Sullivan, Lackawanna, and Susquehanna counties. We can provide you with personalized representation every step of the way. Contact us today to schedule a consultation and discuss your case.

Jake Davis