WESOS Ask Jade August 2024 Business Litigation

Common business disputes:

-Breach of Contract – one party failing to meet the terms of an agreement; parties disagree about what a contract says/how to interpret terms

-Intellectual property infringement – use of the business name; use of brand/images/logo; similar

-Employment disputes – wrongful termination, wage and hour issues, severance,

misclassification, etc.

-Covenants not to compete – IL Freedom to Work Act strictly regulates enforceability of non-competes, non-solicitation, and confidentiality agreements

-Partnership disputes – business strategy, profit splits

-Shareholder disputes – misuse of business funds, breach of fiduciary duty, disagreements

Alternative dispute resolution:,/p>

-Biding Arbitration – essentially a paid private trial, in other words, a method to resolve disputes without going to court. Parties submit the dispute to a neutral third party arbitrator.

-Advantages:

-Efficient and flexible – normally resolved much sooner. May take several years to

receive a trial date in court. An arbitration date can usually be obtained within a few

months. Court calendars also tend to be backlogged.

-Less complicated – simplified rules of evidence and procedure. Litigation leads to many filings and motions, including attending court dates and hearings. Arbitration can bypass this and provide for simplified discovery.

-Privacy – court cases and filing are public information. Arbitration is private and

confidential.

-Impartiality – the parties choose an arbitrator. In litigation, a judge is randomly assigned.

-Usually less expensive – because arbitration is often resolved much more quickly than court proceedings, attorney fees are reduced.

-Finality – with binding arbitration, there are limited opportunities for appeal.

-Disadvantages:

-Questionable fairness – if arbitration is mandatory by contract then parties may not have flexibility to mutually choose this option

-No jury – a jury is an important right that helps prevent bias and unfairness

-Can be more expensive – some experienced and quality arbitrators may demand

substantial fees. Also, if non-binding, you may end up back in court.

-Unpredictable – arbitration does not necessarily follow normal rules of procedure and evidence which can lead to unconventional outcomes.

Talk to an attorney to decide what option may be best for your specific situation.