A Basic Overview of the Business Litigation Process

Let us now turn to the basics of business litigation and how it progresses:

Generally, a business lawsuit goes through 4 distinct stages before the court delivers a judgement. These are :

1. Pleadings
2. Discovery
3. Trial
4. Appeal

Nevertheless, either party to a dispute can extinguish the litigation process voluntarily through a settlement outside the court at any point of time, though this should ideally happen before the dispute goes to the trial stage in a court.

Let us now examine the different stages through which a business dispute passes

1. Pleadings : Each party to a business dispute files their initial papers and these are known as “pleadings”. Pleadings represent a detailed description of the dispute and the claims made by the respective parties. This is followed by a complaint in a court of law and a copy of such complaint is formally delivered to the opposite party. The complaint describes the cause of the dispute and how the interests of the complainant have been impacted and the legal framework for holding the opposite party liable for the harm or losses suffered. The opposite party has a specific time frame within which he should file an answer in the court outlining his response to the complaint. Basically, this document describes the explanation of the dispute by the opposite party and the stand or claims made by him. At this stage, the opposite party may also file counterclaims stating that the complainant in fact caused harm and financial damage to him.
2. Discovery : In any business litigation, it is essential that a detailed account of the dispute is made out and the process is known as the Discovery phase. You will need business lawyers Melbourne or business litigation lawyers Melbourne to handle this part of the dispute as well as the later stages of the litigation. A competent business lawyer will organise the documents, collect all relevant information from third parties or other sources or from the parties to the dispute. He will also align the dispute with provisions in the law, name witnesses, interview the witnesses and generally outline the merits of the case and identify the key issues involved.
3. Motions : Motions allow parties to the dispute to request the court to rule or act. Generally, motions relate to the facts in law or the case. However, motions may also include seeking clarification or resolution with regard to procedural lapses or disputes between parties. Some motions may also seek summary judgment, disposal of the case without a trial etc. and yet another type of motions may seek exclusion of evidence or production of documents during the trial.
4. Trial : Generally, the court sets the trial dates and the parties to the dispute present their evidence during the course of the trial. Before the trial starts, each party to the dispute is also expected to provide a ‘brief’ to the judge. The brief summarizes the evidence and arguments that the respective parties intend to rely upon during trial. The brief will also be used as an opening statement when the trial starts.
5. Fees and costs : The normal practice is for the winning party to file a motion with the court seeking an order to the losing party to pay the costs incurred in the litigation. Such costs if awarded will not include the fee paid to the lawyer. Even when costs are awarded, it might cover just a fraction of all the costs incurred.
6. Appeal : Once the trial is completed, if the outcome is not acceptable to any one party, he can file an appeal, usually with a higher court. In the appeal, the higher court will be requested to review the trial proceedings. Once again, the parties to the dispute will submit a ‘brief’ to the appeal court together with a record of evidence submitted to the trial court. However, the appellate court will generally not interfere with the findings of a lower court or factual evidence. But, if the appellate court spots an error it can revert the dispute back to the lower court and ask for a new trial. If nothing meriting a review is found, the appellate court will confirm the orders of the lower court.

Business disputes – alternatives to litigation

Litigation is not the sole means of business dispute resolution but the alternatives do not deliver a final resolution encouraging people to take matters to the court.

Out of court settlements

At times, attorneys or arbitrators can liaise with the parties to the dispute and carve out an amicable solution to the dispute. Compared to trial, out of court settlements are generally quicker and cost effective.

Mediation

Parties to the dispute can involve a third party, generally a legal professional, to resolve the issue and reach a settlement. This party being an outsider to the dispute can impartially weigh the dispute and advise both parties on the strengths and weaknesses of the dispute.

Arbitration

Arbitration is more like mediation but enjoys a higher legal status. Parties to the litigation can present their respective side of the dispute and argue the case in the presence of the arbitrator. Once a ruling is given by an arbitrator it cannot be appealed.

Conclusion

Legal proceedings are generally expensive and time consuming. You should factor in direct as well as indirect costs while examining the potential outcome from a dispute