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Reasons Your Business Might File a Lawsuit

Reasons Your Business Might File a Lawsuit

When you have been in business long enough, chances are that you will end up in litigation. It is part of the game for a business, and you should be prepared for eventual litigation. Here are three reasons why your business may need to sue someone.

Breach of Contract

When you sign a valid agreement with someone else, it gives you each rights and obligations under the contract. When someone breaks the agreement and does not do what they have promised, they can be sued. A court could order the person to either perform in accordance with the terms of the contract or to pay damages. In some cases, the other party may have a different interpretation of the contract.

Intellectual Property

Your business has intellectual property that could include:

  • Trademarks
  • Copyrights
  • Patents

Someone else could infringe on your company’s intellectual property. While you could send them a cease-or-desist letter or negotiate a solution, you may need to file a lawsuit. Your court case could ask a judge to issue an injunction stopping their behavior, or it could request damages for what you have suffered. Your intellectual property forms a large part of your business’ value, and you must often fight to protect it.

Interference with Contracts

When you have a contract with someone else, nobody else could interfere with your rights. For example, someone could be liable if they tried to hire an employee who had signed a valid contract. You could also file a lawsuit against a company that tries to poach your customers when you have a signed sales agreement.

Contact an Encino Business Litigation Lawyer

The Urbach Law Offices can help you when litigation appears like it may be possible. The time to prepare is early. Contact us online, or call at 888.212.9091 to discuss your case.