Is There Pressure to Settle Commercial Litigation Out of Court?

The term “commercial litigation” covers a wide variety of disputes, making it a relatively large area of the law. Most types of commercial litigation can be extremely costly, both in terms of time and money, for the parties to the dispute. Not surprisingly then, there is often pressure to settle commercial litigation out of court. No one can force you to settle any type of litigation out of court; however, it is often in everyone’s best interest to work toward an out of court resolution to a commercial dispute.

The area of the law known as “commercial litigation” includes disputes in which some type of business transaction is at dispute. Some common examples of commercial litigation include:

• Partnership and shareholder disputes
• Government contract disputes
• Breach of contract
• International trade issues and anti-trust matters
• Consumer fraud and consumer protection issues
• Securities litigation
• Product liability
• Unfair competition
• Interference with contract or business relationships
• Intellectual property

Because businesses entities are often parties to commercial disputes, it is not uncommon that the parties to the litigation are from different states. It also frequently means that the amount in dispute is substantial. Both of these factors often mean that commercial litigation can be very costly, in terms of funding the litigation, for everyone involved. It also means that the parties may have to devote a significant amount of time to the litigation – time that could be better spent on running the business in the eyes of many. These two facts are what typically lead to pressure to settle a commercial dispute.