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Type of Lawsuits That Are Common Against Businesses

Business Liability Insurance

Type of Lawsuits That Are Common Against Businesses


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 as you read this article, it’s always good to get business liability insurance.

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 closing your business doors for good.

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 in Toronto and Vancouver. They can help you file a lawsuit, defend a lawsuit, or do a class action lawsuit. You can fill out the form on this page or call us toll-free below.

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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 ClearWay Law can help you within the Toronto area.

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.

Type of Lawsuits | 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.

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Type of Lawsuits | 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.

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 the 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.

Help for Business Lawsuits | Business 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. Contact the legal professionals at ClearWay Law.

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. Learn more about business lawsuits by calling us today.

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Top Insurance Companies in Ontario 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.

Province of Ontario Planning to Sue Tobacco Companies

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
  • 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.

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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 purpose.

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

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

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

Type of Lawsuits

Type of Lawsuits | Transfer Risk

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 in danger of interference by governments or other groups in one’s corporation operating in a foreign country.

In conclusion, there are many types of lawsuits. If you want to learn more about law, view our videos.