Commercial litigation can be a complex and daunting process for individuals unfamiliar with it. Misconceptions regarding commercial litigation are common and can lead to unnecessary stress, expenses, and disappointment. In this article, you will explore some of the most prevalent misconceptions regarding commercial litigation.
Misconception #1: Litigation is always the optimal solution
A common misunderstanding regarding litigation is the belief that it is always the optimal solution for resolving disputes. This is not entirely true. Litigation can be expensive, time-consuming, and emotionally taxing. In some cases, alternative dispute resolution methods such as mediation or arbitration may be more efficient. These methods can be faster, less expensive, and can lead to a more satisfactory outcome for all parties involved.
Misconception #2: All disputes can be resolved through litigation
Another common misconception is the idea that all disputes can be resolved through litigation. However, this is not always the case. Some disputes may not be suitable for litigation. For instance, if a dispute involves a personal relationship between parties, such as a family business dispute, litigation may exacerbate the conflict. In such cases, alternative dispute resolution methods may prove to be more effective.
Misconception #3: Litigation is always an adversarial process
Another prevalent misconception is the belief that litigation is always an adversarial process, with each party fighting to win at all costs. While this is sometimes true, it is not always the case. In fact, many commercial litigation cases are resolved through negotiation and compromise. This is especially true in cases where the parties have an ongoing business relationship that they want to maintain.
Misconception #4: The winning party always has their legal fees paid
A common misunderstanding is the belief that the winning party always has their legal fees paid by the losing party. This is not always the case. In many jurisdictions, parties are responsible for their own legal fees, regardless of who wins or loses the case. In some instances, the court may order one party to pay the other party’s legal fees, but this is not always the case.
Misconception #5: Litigation is always a public process
Another common misconception is that litigation is always a public process, with court proceedings and documents available to anyone. While this is true to some extent, there are ways to keep the details of a commercial litigation case private. For example, parties can agree to keep the details of the case confidential, or they can request that the court seal certain documents or proceedings.
Misconception #6: The court always makes the final decision
Finally, a common misconception is that the court always makes the final decision in a commercial litigation case. While the court does have the authority to make decisions in a case, the parties often have the opportunity to negotiate a settlement agreement outside of court. In fact, many commercial litigation cases are resolved through settlement rather than a court decision.
Commercial litigation can be a complicated and confusing process, but understanding these common misconceptions can help parties navigate the process more effectively. Finding a lawyer like our friends at Brown Kiely, LLP to help through this process is often in your best interest.