Disputes between businesses or corporate entities can have harmful consequences for the business or company. A corporate or business dispute may involve a variety of legal issues including debt recovery, shareholder disputes, insurance disputes, breaches of contract, the correct interpretation of an agreement, consumer and competition matters, and insolvency and administration issues.
Corporate or business disputes that involve litigation can be high in cost and protracted. This is why we at AH2 Legal always advocate that disputes be resolved out of Court by using alternative dispute resolution processes to keep costs down and to ensure that the day-to-day operations of businesses and corporations continue to progress smoothly.
This is achieved by way of early negotiation and informal settlement conferences that provide an opportunity to settle the matter quickly and more cost-effectively than litigation. These methods of mediation can be effective where the parties are willing to negotiate in good faith and make genuine attempts to resolve the dispute.
If mediation does not provide an overall resolution, it may at least identify and narrow the matters in contention. Mediation can be used for complex matters and the parties may obtain expert reports to support their position. If a resolution is reached, the agreement can be formalised in a deed of settlement. Mediation offers an opportunity to preserve the parties’ relationship, particularly when they intend to continue working together. This is beneficial where the parties have long-term commercial arrangements such as the ongoing provision of products or services. If early dispute resolution fails, then the corporation or business may need to commence litigation or defend a matter in Court proceedings.
Before legal proceedings are commenced, a careful assessment must be made of the unique circumstances of the matter, the available or obtainable evidence and the likelihood of success. An experienced lawyer can help in identifying a legal cause of action or right to seek a remedy from the other party.
Each case is different, and a cost/benefit analysis of your matter should be undertaken prior to commencing legal action as there is sometimes no point in pursuing legal action against an entity that will inevitably be unable to satisfy a Court judgment. Legal proceedings must also be commenced within certain limitation periods, so it is important to have a matter assessed promptly to ensure adequate preparation to file proceedings and properly present a case.
Accordingly, choosing an experienced lawyer to represent a company facing legal issues and possible court action can greatly improve the potential outcome and mitigate loss. A corporate or business dispute will almost always interrupt the daily operations of the business or corporation. If not managed effectively from the outset, a small dispute can quickly escalate to significant financial and reputational loss.
Time is of the essence when dealing with such disputes and early action in obtaining legal advice is vital. Call us now to speak to one of our experienced corporate and business disputes lawyers who will be able to guide you through the process.
