A business dispute is a disagreement or conflict between two or more parties involved in a business relationship. Business disputes can disrupt operations, damage relationships, and potentially lead to costly legal battles or require negotiation to resolve differences. Companies of all sizes—from startups and small enterprises to mid-sized and large corporations—are vulnerable to various types of business disputes. 

Choose a Pittsburgh business lawyer for a legal business assessment of your dispute and dedicated representation to protect your interests.

Contract Disputes

A breach of contract occurs when one party fails to fulfill the terms outlined in a legally binding agreement. Contract law is governed by both statutory regulations and common law principles. A breach of a contractual agreement can range from failing to deliver goods or services on time, to not paying for the products or services rendered. Disputes often arise over the interpretation of contractual clauses, payment terms, or delivery obligations.

Common types of breach of contract claims between disputing parties include:

• Failure to deliver goods or services
• Non-payment for services rendered
• Violation of confidentiality or non-compete agreements
• Disagreement over contract terms or performance standards

Partnership and Shareholder Disputes

Disagreements between business partners or shareholders can escalate into serious legal disputes, particularly in partnerships, limited liability companies (LLCs), or corporations. These disputes often involve differences over the direction of the business, profit distribution, or decision-making authority. Disputes may also arise from unequal contributions of capital or labor, conflicts of interest, or allegations of mismanagement.

Partnership and shareholder disputes between involved parties may center on:

• Disagreements over business strategy or operations
• Profit-sharing disagreements
• Misuse of business funds or resources
• Breach of fiduciary duty by one or more partners or shareholders

Employment Disputes

Employment-related disputes are another common source of business litigation. These disputes can arise from wage and hour claims, wrongful termination, discrimination, harassment, or issues related to employee benefits.

Key employment disputes include:

• Wrongful termination claims
• Discrimination or harassment complaints
• Breach of employment contracts or non-compete clauses
• Unpaid wages or overtime disputes under Pennsylvania’s labor laws
• Disputes regarding employee classification (e.g., independent contractor vs. employee)

Intellectual Property Disputes

Businesses may sometimes face disputes related to intellectual property claims, including trademarks, patents, copyrights, and trade secrets. Protecting intellectual property is vital for businesses, as IP rights can represent a significant portion of a company's value. Disputes may arise when another party uses a business’s intellectual property without permission, leading to claims of infringement.

Common intellectual property disputes include:

• Trademark infringement
• Patent disputes
• Copyright violations
• Misappropriation of trade secrets

Commercial Lease Disputes

Many businesses lease their premises, leading to the possibility of commercial lease disputes. These commercial disputes can involve issues such as rent payment disagreements, property damage, maintenance responsibilities, or a commercial dispute over lease renewals.

Typical commercial lease disputes include:

• Failure to pay rent or property taxes
• Breach of lease terms related to property usage
• Disputes over repair or maintenance obligations
• Eviction or lease termination conflicts

Real Estate Disputes

Real estate transactions and business property ownership may lead to disputes over property boundaries, zoning laws, title issues, or land use. These disputes can impact business operations, particularly for companies involved in real estate development or those requiring specific zoning approvals for business activities.

Real estate disputes can include:

• Disagreements over property boundaries or easements
• Breach of real estate purchase agreements
• Zoning or land use conflicts
• Construction or development disputes

Fraud and Misrepresentation

Fraudulent misrepresentation can occur when one party knowingly makes false statements or conceals facts to induce another party into entering a contract or business transaction. Businesses may face claims of fraud if they are accused of misleading another party, resulting in financial harm.

Fraud and misrepresentation disputes typically involve:

• False or misleading statements during negotiations
• Concealment of material facts
• Inducing another party to sign a contract under false pretenses

Business Dissolution Disputes

When a business decides to dissolve, disagreements often arise regarding the distribution of assets, settlement of debts, or the rights and responsibilities of the parties involved. These disputes can occur in partnerships, LLCs, or corporations, particularly when there is no clear dissolution agreement in place.

Dissolution disputes may involve:

• Disagreements over the valuation of assets
• Conflicts over debt settlement or creditor claims
• Disputes over ownership interests and profit distribution

Preventative Measures to Avoid Business Disputes

Clear and Detailed Contracts

A well-drafted contract is essential to prevent misunderstandings and disputes. Ensure that all agreements with clients, partners, suppliers, and employees are in writing and clearly outline the rights, responsibilities, and expectations of each party. 

Thorough Partnership or Operating Agreements

For partnerships, LLCs, and corporations, having a detailed partnership or operating agreement can prevent many internal disputes. This agreement should clearly outline decision-making authority, profit-sharing, roles, and responsibilities.

Regular Communication and Documentation

Maintaining regular and transparent communication with business partners, employees, and clients helps prevent misunderstandings. It is also important to document key decisions, transactions, and agreements in writing to avoid disputes later on.

Dispute Resolution Clauses

Include clauses in your contracts for resolving disputes, such as specifying that any disagreements will be handled through alternative dispute resolution methods before escalating to litigation. This can save time, money, and preserve a business relationship.

Legal Compliance

Stay compliant with state and federal business laws, including employment regulations, tax requirements, and industry-specific legal standards. Non-compliance can lead to costly disputes between a business owner and regulators or employees.

Strategies Very Law Uses to Resolve Disputes and Protect Your Interests in a Business Dispute

Comprehensive Case Evaluation

At Very Law, our Pittsburgh business disputes attorney Ryan D. Very, Esq. begins by thoroughly reviewing the details of your business dispute, assessing contracts, communications, and other relevant documents to identify key issues. This helps to formulate a strong strategy based on the strengths and weaknesses of your case.

Negotiation Tactics

Depending on the nature of the dispute and the client’s goals, attorney Ryan Very may seek to resolve business disputes through skilled negotiation while keeping the option of litigation open, should it become necessary. He works to open lines of communication with the opposing party, striving to find mutually acceptable solutions that protect your interests. His negotiation tactics may involve:

• Clarifying legal positions: He presents your legal rights, obligations, and leverage points clearly.
• Collaborative problem-solving: He fosters discussions that aim to address underlying issues, such as contract breaches or partnership conflicts, and explore compromises that satisfy both parties.
• Preserving business relationships: His goal is to resolve the matter without damaging long-term business relationships when possible.

Litigation 

When litigation becomes necessary, attorney Very is prepared to protect your interests aggressively in court. Mr. Very will take the following steps in these cases:

• Filing or responding to a lawsuit: He ensures all legal documents are prepared and filed accurately and within deadlines.
• Building a robust case: By gathering and presenting evidence, including contracts, financial records, and communications, attorney Very builds a solid case that supports your claims.
• Courtroom representation: Ryan Very is a seasoned litigator who will fight your case with persuasive legal arguments, facts and evidence, aiming for favorable judgments or settlements.

Enforcing Your Rights and Seeking Compensation

Attorney Ryan Very seeks to enforce your business rights, whether by upholding contract terms, pursuing financial damages, resolving partnership disputes, or utilizing other forms of dispute resolution. Where applicable, he ensures that you are fully compensated for lost revenue or profits, while holding the other party accountable.

To schedule your confidential consultation with our legal team, call us at 412-424-6199 or contact us online.