How A Commercial Litigation Lawyer Helps Businesses From Different Sectors

A commercial litigation lawyer specializes in handling legal disputes related to business transactions. Their primary role is to represent clients in corporate lawsuits with the aim to resolve disputes either through litigation (court proceedings) or alternative methods like arbitration or mediation while utilizing reasonable and cost-effective solutions to protect their client’s interests. 

Commercial litigation benefits all types of businesses regardless of their size, industry, or market sector. Whether start-ups or established organizations, and whether the business operates in technology, healthcare, retail, real estate, finance, or any other sector, litigation lawyers that specialize in commercial transactions play a vital role in managing and resolving business disagreements, trade disputes and commercial conflicts.

Legal disputes are a natural part of doing business, and having a solid strategy for handling them can be crucial for a company’s long-term success and stability regardless of what industry it belongs to. 

Here are some key tasks a  commercial litigation attorney undertakes to support businesses in various industries:

Providing Legal Advice on Business Disputes

One of the most important aspects of legal counsel for businesses is risk management to help them avoid legal disputes and liabilities in the first place. Commercial litigation lawyers offer proactive advice to businesses on how to prevent  issues such as contract breaches, regulatory non-compliance, or employment issues from arising by identifying potential risks and working with them to put policies, contracts, and procedures in place to lessen the chance of costly legal problems.

Many litigation lawyers in Toronto provide free consultation services to help identify potential legal issues early and provide guidance on how to avoid litigation. 

Startups and small businesses in Toronto, for example, can greatly benefit from preventative advice as they navigate growth issues. A litigation lawyer in Toronto can assess legal risks related to business operations, products, intellectual property, and partnerships and offer guidance in advance on how to control the risks before they escalate into costly legal battles.

Protecting Intellectual Property

Another vital support commercial litigators can provide is helping companies protect their IP assets and deal with intellectual property disputes in infringement claims. Their role is especially indispensable for hi-tech and biotech companies where protecting intellectual property is particularly essential.

A business litigation lawyer will help file patents for innovations, trademarks for brand protection, and copyrights for proprietary content with the relevant government authorities like the Canadian Intellectual Property Office (CIPO). They also draft, negotiate and review licensing agreements for the use of exclusive technology or biotechnology and make sure that contract terms are favorable and enforceable. In addition, they also draft non-disclosure agreements (NDAs) to help businesses with trade secret protection and safeguard confidential information. A commercial litigator will also represent clients in IP disputes and trade secret theft and help resolve issues involving patent infringements, copyright violations, licensing disputes, data breaches, privacy laws, and other technology-related legal matters.

Filing and Handling a Certificate of Pending Litigation (CPL)

When there is an ongoing dispute related to real property or land, a litigation attorney will file a Certificate Of Pending Litigation or CPL.

What is a certificate of pending litigation? It is used as a protective legal tool to prevent the sale or transfer of a disputed property until the matter is resolved in court. Businesses in different industries benefit greatly when using CPL, especially businesses involved in real property transactions, ownership disputes, or contractual disagreements.

In construction litigation, for example, if the owner of a construction project in Ontario is in litigation with a contractor for breach of contract over project delays or defective work, a litigation attorney will file a Certificate of Pending Litigation in Ontario to ensure that the property cannot be sold until the matter is resolved.

The crucial role of a business litigation lawyer in dealing with CPL’s include: 

• Evaluating and advising whether it’s appropriate to file a CPL.
• Preparing the legal documentation required for filing. 
• Ensuring that the legal claim is officially recorded with the appropriate land registry or court.
• Informing third parties of the CPL filing so they are made aware of the ongoing litigation.
• Managing the legal strategy to protect the client’s interests during the legal dispute, including defending the validity of the CPL if the other party challenges it, and handling the litigation related to disputes over the CPL.
• Handling the legal steps to remove the CPL once the dispute is resolved to clear the property title for future transactions.

Corporate Governance and Shareholder Disputes

Lawyers who are skilled at corporate litigation are adept at managing business-related legal issues. They manage disputes between business partners, investors, or shareholders, addressing issues like the breach of fiduciary duties or disputes over company ownership and governance.

A corporate litigation attorney also offers valuable legal representation when clients are involved in business torts or legal violations in business activities, such as fraud, defamation, conspiracy, false advertising. Seeking professional legal counsel is necessary to protect its interests and recover damages.

In the high-growth sectors of hi-tech and biotech companies in Toronto, for instance, which often raise funds from investors,  litigation firms in Toronto that employ specialized lawyers with expertise in different branches of business law, such as intellectual property law, competition law, employment law, and international business law are crucial in helping draft clear shareholder agreements, addressing voting rights, equity stakes, and exit strategies to prevent future disputes. 

Commercial litigation lawyers are also expertly adept at handling disputes related to ownership structure, stock options, and shareholder rights, such as disagreements on the distribution of assets or liabilities when a company is restructuring or dissolving, breach of stock option agreements, or breach of fiduciary duty.

 Alternative Dispute Resolution (ADR)

Litigation lawyers play a crucial role helping businesses resolve legal issues through alternative dispute resolution methods such as arbitration and mediation. These methods are often faster and more cost-effective than traditional courtroom litigation.

Based on the nature of the dispute, a business litigation attorney helps the company determine which ADR method is the most appropriate. For instance, a startup located in Ontario that is facing a contract dispute might benefit from mediation in Toronto to preserve a business relationship, while a complex patent dispute in a biotech company may be better suited for arbitration in Ontario due to the technical nature of the subject.

Finding the Best Litigation Lawyer in Toronto

A commercial litigation lawyer in Toronto offers essential legal support to businesses across all sectors. Their specific knowledge and training help companies navigate complex business disputes which allow them to operate with confidence in highly competitive markets knowing that they have a competent and dependable advocate to help them deal with any challenges that arise, no matter the industry they belong to.