Protecting Yourself in Corporate Disputes

Corporate disputes may arise out of various issues in a corporation, sometimes involving the owners and shareholders themselves, or with other clients and other business entities. Some of the common business and corporate disputes may include the following:

•    Breach of contract
•    Partnership or shareholder dispute
•    Breach of fiduciary duty
•    Fraud
•    Shareholder derivative suits
•    Trademark and other intellectual property disputes
•    Management disputes on organizational matters
•    Business succession litigation involving  death or withdrawal of a principal shareholder or partner
•    Insurance disputes
•    Commercial disputes involving lease, rent claims, and lending disputes
•    Insurance disputes
•    Debtor-creditor violations
•    Enforcement of non-compete or nondisclosure, agreements
•    State or federal licensing or regulatory enforcement actions

Corporate disputes can be resolved in several ways, depending on the issues of conflict. However, you can protect yourself and your company in advance by having legal mechanisms in place. These include having properly-drafted documents such as corporate contracts, agreements, and various implementing policies and guidelines.

Alternative Dispute Resolution

When parties in dispute cannot reach an agreement, they may resort to alternative dispute resolution (ADR) as an alternative to a court hearing or proceeding. Unlike in courts, the ADR process is informal, quicker, cheaper, and confidential.

There are three common methods to resolve disputes under the ADR:

1. Negotiation – This involves an informal bargaining process where parties may communicate directly to reach an agreement.
2. Mediation – This method involved a neutral, independent party to act as a mediator who helps parties to work out their resolutions by exploring the options on how to resolve the conflicts. The mediator often assists in identifying the issues and provides ways for resolution. This method may be undertaken voluntarily by parties, under court order, or through an existing contractual agreement.
3. Arbitration – This method requires parties to present arguments and evidence to the arbitrator who makes a determination or judgment. Compared to other methods, arbitration is a more formal process and the parties are bound by the decision of the arbitrator.

Having the services of an experienced corporate and business lawyer may prove valuable in dealing with corporate issues that may threaten your business operation.