We put together a list of the type of lawsuits that are common against businesses. Running a business is more than selling products and services to the general public or to businesses.

There are many pitfalls that can cause a business to go under, such as lawsuits against companies. These lawsuits can range from small amounts to millions of dollars in compensation to the aggrieved party.

Keep in mind that as you read this article, getting business liability insurance is always good.

In addition to the financial hardship, a business must endure from the lawsuit, they must also deal with their reputation and brand becoming destroyed.

People, as well as other companies, will avoid doing business with you. Eventually, due to a loss in profits and customers, you could end up losing your business doors for good.

Businesses must prepare for legal risks as they can lead to costly and damaging lawsuits. It’s crucial for businesses to understand common types of lawsuits that they can face and take steps to avoid or minimize them.

Types of business legal challenges

One of the most common types of legal challenges that businesses face is employment-related lawsuits. These lawsuits can arise from discrimination, harassment, wrongful termination, and wage and hour violations.

To prevent these claims, businesses should have clear policies in place and document employee interactions to protect against claims of harassment or discrimination.

Breach of contract is another type of lawsuit commonly brought against businesses. It arises when a party fails to fulfill the terms of a contract, like failing to pay for goods or services provided by another party.

To minimize the risk of breach of contract lawsuits, businesses should draft clear and detailed contracts and maintain thorough records of all transactions and communications.

Litigation over a company’s trademark

Intellectual property lawsuits can be financially detrimental to businesses. These lawsuits may occur when a company uses another company’s trademark, patent, or copyrighted material without permission.

To avoid these lawsuits, businesses should conduct research before using any intellectual property and acquire the necessary licenses or permissions when required.

Product liability lawsuits are common for businesses that sell products. These lawsuits may arise when a product causes harm to consumers.

To reduce the risk of product liability lawsuits, businesses should ensure that their products meet safety requirements and regulations, provide clear instructions for use, and warnings of potential hazards.

The Impact of Typical Business Lawsuits on Companies

In recent years, businesses have become increasingly vulnerable to data breaches, cyber-attacks, and data privacy violations. Lawsuits related to these events can lead to substantial financial losses and harm a business’s reputation.

To avoid these risks, businesses should implement strong security measures, provide employee training on data privacy and security, and have a data breach response plan in place.

Legal risks can result in lawsuits that are costly and harmful to businesses. By understanding the common types of lawsuits and taking appropriate steps to mitigate these risks, businesses can protect themselves and reduce the potential impact of legal challenges.

Consultation with legal counsel and insurance professionals can also assist businesses in identifying and managing legal risks.

Business Liability Insurance

On the other side, you may find yourself in a situation where you are the aggrieved party that may need to file a business lawsuit.

You may discover that a previous employee had stolen confidential information about your products and services to start their own company or to sell the information to competitors.

In another situation, you may have partnered to obtain contractual services. However, the other business failed to provide these services.

If you need to speak to a business lawyer for a lawsuit, we have several top business lawyers. They can help you file a lawsuit, defend a lawsuit, or do a class action lawsuit.

Knowledge Is Power With Lawsuits

Understanding the common types of lawsuits that impact businesses allows you to implement internal policies to avoid these issues. It can also help you take the appropriate legal action to protect your business. Here are some common lawsuits that lawyers can help you with.

If you need a business lawyer to help you with a lawsuit, our business lawyers can help you prior to filing it. Our business lawyers do not offer court services.

They can help you correspond with the opposing party prior to the claim being filed. Sometimes issues can be resolved without involving the courts.

Business lawsuits are very expensive. Normally they go on for many years, and can easily cost over $100,000.

Don’t forget to speak to a company about getting business liability insurance.

Intellectual Property Rights

This type of lawsuit is common for businesses. Another company may take your product ideas and pass them off to consumers using their own brand and name.

You could also be subject to a business lawsuit because your logo or brand appears similar enough to another company’s images. You may not have realized that you were using a copyrighted image as you never obtained permission to take it for commercial use.

Type of Business Lawsuits and Employment Law

Employment lawsuits filed on behalf of workers against your company can vary greatly depending on the business circumstances.

An applicant or existing employee may file a discrimination claim because they feel that the HR department or managers violated their civil rights by discriminating against them based on sex, race, age, religion, disability, or nation of origin.

These types of lawsuits may also be filed by customers who feel that they have been treated unfairly by your employees.

How Common Business Lawsuits Can Shape Your Company’s Future

There are also wage law violations where an employee claims that they were not properly compensated for the work that was provided.

The employee could say that they were paid less than minimum wage. An employee could also file a lawsuit for not being compensated when working overtime.

Other types of common business lawsuits are harassment and wrongful termination. Harassment covers any unwelcome conduct that is based on sex, race, religion, age, disability, or national origin.

Wrongful termination lawsuits apply when an employee claims they were wrongly fired from their job due to retaliation for filing a harassment complaint or because the company violated their civil rights.

Business Lawsuits and Liability Insurance

There are many nuances to business lawsuits, whether you have someone placing a claim against you or your company is filing a claim against another organization or individual.

Knowing your legal rights can help protect your company and profits. 

We have decades of experience helping businesses understand the laws that can impact their corporations.

We can help businesses protect themselves from lawsuits through corporate planning and can provide legal representation on your behalf if you want to file a claim against another company or an individual.

Top Insurance Companies Get Sued

Six top insurance companies are being sued in a class-action lawsuit. The claim is for multiple millions of dollars, a potential hit to a company regardless of its size.

The claim was regarding how the insurance companies collected and used HST, which is 13%. Some companies use HST as a 13% cash bonus, a silly mistake at the end of the year when they must give the money to the CRA.

Tobacco Business Lawsuits

Ontario is wanting to sue Tobacco companies for the massive health care costs that cigarettes have caused the province.

Tobacco companies have for years managed to use “lobbyists” to avoid lawsuits and criminal proceedings against them. As Canada becomes more health-conscious, tobacco companies are becoming more vulnerable.

Ontario started a claim against the tobacco companies back in 2009, and a decade later, a court date has almost been set.

The tobacco companies can afford to hire large business law firms, which can delay court dates and cause other hold-ups in the justice system.

Therefore, if you feel you are about to be sued, or if you have been served, it’s important to contact a business law firm right away.

If you want us to recommend a business liability insurance company to talk to, fill out one of our forms.

Canada Dry Under Fire for False Advertising

Canada Dry dropped the claim that it is made from actual Ginger. This happened after testing found that there was little or no ginger in the can.

If any ginger was in the can, it was so nominal that no health benefits would be possible.

Instead of going to court to defend themselves, they decided to just make payments to everyone affected by the false claim.

This likely means that the company either:

• Felt they would lose in court
• They didn’t want to damage the brand

This was most likely an excellent decision by Canada Dry.

The settlement is in the USA only, not Canada. Each house affected gets $5.20 if they don’t have a receipt and $40 if the household can show a receipt.

International Business Law Definitions

Sanction- A government action normally regarding free trade for an adversarial purpose related to politics.

Embargo- An action by a government that prohibits trade with a country entirely, normally for political reasons instead of economic purposes.

Boycott- An effort to stay away from doing business with a country, normally a goal instead of a rule.

Corruption- Payments or favours made to officials in return for something that you should not have received.

Bribery- The use of payments or favours to obtain some right or benefit to which the briber has no legal right

A Deep Dive into Frequent Business Lawsuits and Their Effects

Several countries around the world limit the number of people that can leave the country. China, for example, limits their citizens to $50,000 USD in transfers outside the country per year.

Many wealthy Chinese were getting their money out of China, damaging the Chinese economy. Evidence of this can be seen in cities like Vancouver, Canada.

Transfer risk is the danger of having one’s ability to transfer profits in and out of the country due to government rules and regulations.

Operating risk is when there is a danger of interference by governments or other groups in one’s corporation operating in a foreign country. There are many types of lawsuits. Speak to a law firm.