7 Common Mistakes Companies Make In Commercial Litigation

Commercial lawsuits can consume enormous amounts of time, money, and management attention. While some disputes require litigation to protect your business interests, how you handle these cases determines whether you emerge stronger or significantly weakened by the experience.

Our friends at Law Offices of Darth M. Newman note that commercial disputes often involve substantial business relationships and financial stakes that extend well beyond the immediate legal issues. When your company faces a commercial dispute, a commercial litigation lawyer who understands both the legal principles and business realities can help you avoid mistakes that compound your problems.

Destroying Potentially Relevant Documents

Once litigation becomes reasonably foreseeable, you have a legal obligation to preserve all potentially relevant documents and electronic data. This includes emails, text messages, internal communications, financial records, and anything else that might relate to the dispute.

Destroying documents after litigation begins, or even after you suspect litigation might occur, can result in severe sanctions. Courts can impose monetary penalties, give adverse jury instructions, or even enter default judgment against you. We’ve seen cases lost not because of the underlying merits but because of document destruction that appeared intentional.

Implement a litigation hold immediately when disputes arise. This means instructing employees to preserve all relevant materials and suspending any automatic deletion policies for potentially relevant data.

Failing To Assess Litigation Costs Realistically

Business owners often underestimate the true cost of litigation. Beyond attorney fees, you’ll face expenses for:

• Expert witness fees and reports

• Electronic discovery and document review

• Depositions and court reporter costs

• Travel expenses for witnesses and counsel

• Potential settlement or judgment amounts

• Management time diverted from business operations

A case that seems worth fighting may not make financial sense once you calculate the total investment required. We provide realistic cost assessments early in the process so you can make informed decisions about whether to litigate, settle, or pursue alternative dispute resolution.

Communicating Carelessly About The Dispute

Everything you write or say about the litigation can potentially become evidence. Employees often discuss cases in emails, text messages, or Slack channels without realizing these communications may be discoverable. Social media posts about the dispute, even seemingly innocent ones, can undermine your legal position.

We counsel clients on proper communication protocols during litigation. Key documents should be marked as privileged communications with counsel when appropriate. Business decisions should be documented carefully, and employees should understand what they can and cannot discuss.

Choosing The Wrong Legal Team

Not all attorneys handle commercial litigation effectively. Some lack trial experience and push for early settlements regardless of case strength. Others have limited understanding of your industry and struggle to grasp technical or business concepts that may be central to your dispute.

Commercial litigation requires attorneys who understand business realities, have courtroom experience, and can commit the necessary time and resources to your case. We focus our practice on business disputes and have the depth of experience needed to handle complex commercial matters from initial filing through trial and appeal if necessary.

Letting Emotions Drive Legal Strategy

Business disputes often involve personal relationships gone bad. Partners who were once friends become adversaries. Longtime business associates turn into opponents. These emotional elements can cloud judgment and lead to poor strategic decisions.

Effective litigation strategy requires objective analysis of strengths, weaknesses, and realistic outcomes. Pursuing litigation to punish someone or prove a point rarely makes business sense. We help clients separate emotional responses from sound legal and business strategy.

Ignoring Alternative Dispute Resolution

Litigation isn’t always the best path forward. Mediation and arbitration can resolve disputes faster, cheaper, and with more predictable outcomes than traditional litigation. Many contracts require these alternative approaches before allowing lawsuits.

We evaluate whether alternative dispute resolution serves your interests better than courtroom litigation. Sometimes the answer is clear. Other times, pursuing litigation while remaining open to settlement negotiations provides the best leverage for achieving favorable results.

Providing Inadequate Information To Counsel

Attorneys can only be as effective as the information you provide. Withholding unfavorable facts, forgetting about relevant documents, or failing to identify key witnesses hampers your legal team’s ability to develop winning strategies.

We need complete, honest information about your case, including the problems and weaknesses. Surprises during depositions or trial can be devastating. Attorney-client privilege protects your communications with us, so there’s no benefit to holding back relevant information.

Making Informed Litigation Decisions

Commercial litigation requires careful strategic planning, realistic cost assessment, and experienced legal counsel who understand business priorities. Whether you’re considering filing a lawsuit or defending against claims, we can help you evaluate your options and develop an approach that protects your business interests. Contact us to discuss your commercial dispute and learn how we can help achieve the best possible outcome.