How to Resolve California Business Transactions Lawsuits

Running a business in California can be rewarding and challenging. Even the most carefully planned deals can lead to disputes, which necessitate hiring a business transactions lawyer. An experienced legal team can walk you through the process of how to resolve California business transactions lawsuits when the need arises.

Explore what these legal claims involve, common causes of the disputes, and some resolution strategies that can make a big difference in your company’s success.

Why Do Business Transaction Lawsuits Happen?

Business deals often involve contracts, obligations, financing, and expectations between parties. Disputes can arise when one party believes the other has failed to meet their end of the agreement or when parts of the conflict are unclear. Some of the most common causes of business transactions cases can include:

Breach of contract. When one party fails to uphold the terms of the deal
Partnership disputes. Conflicts between co-owners or investors over rights, responsibilities, or profit distribution
Mergers and acquisitions disagreements. Misrepresentation, valuation disputes, or failure to disclose liabilities
Real estate transactions. Issues with commercial leases, purchase agreements, or development contracts
Employment agreements. Disputes over non-compete clauses, confidentiality terms, or executive contracts
Financing and investment conflicts. Mismanagement of funds or disagreements between lenders and borrowers

Business transaction laws can be complicated. They’re also heavily regulated. Even a small oversight can lead to major financial and legal consequences. Since 1985, the Institute for Mergers, Acquisitions & Alliances has reported 325,000 mergers and acquisitions in the United States. In 2020, that number was 4,606.

Why Experienced Legal Representation Is Important

When business disputes arise, attempting to handle them without professional legal guidance can be risky. California’s commercial and contract laws can be complicated. That’s why many business owners choose to hire a business transactions lawyer early in the process.

California business transactions attorneys can:

Protect your business assets and reputation
Negotiate with other parties
Evaluate the strength of your case
Identify potential risks and liabilities
Represent you in mediation, arbitration, or court

Having legal representation not only increases your chances of a favorable outcome. It also ensures that your business remains legally compliant throughout the entire process.

Resolving California Business Transaction Legal Claims

You don’t necessarily have to go to trial to resolve a dispute. Many cases settle long before they reach the courtroom. Some methods of resolving business transactions cases include:

Negotiation. Direct negotiation with parties can be an attempt to reach a mutually acceptable solution. This is a less formal and more cost-effective method of resolving disputes, but it requires cooperation from both sides.
Mediation. This involves a neutral third party who facilitates discussions between the disputing sides. While the mediation does not make a binding decision, its role is to guide the parties toward agreement.
Arbitration. A neutral arbitrator hears both sides and makes a binding or non-binding decision. Many business contracts in California include arbitration clauses that require disputes to be resolved this way. This is less formal than court.
Litigation. If these other methods fail, litigation is the next step. This means filing a legal claim and presenting the case before a judge or jury. Litigation can be time-consuming and costly, but it can resolve significant disputes involving fraud, breach of fiduciary duty, and substantial damages.
Settlement agreements. Even during litigation, many cases end in settlement. Parties may agree to financial compensation, contract modifications, or other terms to avoid the uncertainty of a trial.

Why You Should Choose Fishman, Larsen & Callister

When facing a complex business transaction legal claim, the law firm you choose makes a huge difference. Fishman, Larsen & Callister have a strong reputation for success in handling business transaction cases of all sizes.

Our attorneys understand the nuances of California’s commercial codes, case law, and contract regulations. We’ve successfully represented businesses through negotiations, arbitration, and litigation.

Our team prioritizes practical solutions that protect your business goals and financial interests. Beyond dispute resolution, we also help businesses draft contracts, structure transactions, and prevent future conflicts.

FAQs

Q: Should I Hire a Lawyer When Buying a Business?

A: Hiring a lawyer when buying a business is highly recommended. Purchasing a business involves complex contracts, financial liabilities, and legal obligations that can create serious risks if overlooked. A business lawyer reviews purchase agreements, negotiates terms, and conducts due diligence to uncover hidden debts or pending claims. Without legal guidance, buyers can face unexpected legal or financial challenges after the purchase.

Q: What Kind of Lawyer Handles Mergers and Acquisitions?

A: A mergers and acquisitions lawyer handles business purchases, sales, and corporate restructuring. They work on negotiating deal terms, drafting contracts, and guiding clients through financing arrangements. They often collaborate with tax advisors, accountants, and other professionals to structure transactions efficiently. Mergers and acquisitions lawyers also secure government approvals, address antitrust concerns, and manage shareholder rights.

Q: Can You File a Claim for a Conflict of Interest?

A: In some cases, you can file a legal claim against a lawyer or another professional for a conflict of interest if it harms your legal rights or financial interests. In legal practice, conflicts of interest arise when the legal representation of one client directly interferes with another client, or when personal interests interfere with professional duties.

Q: What Is Rule 1.7 in California?

A: Rule 1.7 of the California Rules of Professional Conduct governs conflicts of interest in representing clients. It prohibits a lawyer from representing a client if the representation is directly adverse to another client or if there is a significant risk that the lawyer’s responsibilities to another could materially limit their ability to represent the original client.

Hire a Business Transactions Lawyer

If you need help understanding how to resolve California business transactions lawsuits, the experienced team at Fishman, Larsen & Callister is committed to helping businesses protect their interests and resolve disputes efficiently. Whether your case involves contract enforcement, partnership disputes, or multi-party litigation, our team can guide you through every step of the process.