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What conflicts may result in a business lawsuit?

Business disputes that turn into Florida lawsuits arise in many scenarios. Disputes with workers may result from a company’s use of different contracts or internal procedures. A breach of a contract, such as a non-disclosure or non-compete agreement, may also give rise to legal action. Additionally, claims alleging workplace discrimination or harassment can get filed against business owners.

Some common disputes that end up in litigation

Contract disputes come in all shapes and sizes. There are two in particular that could end up having to be decided by a jury after a trial has concluded.

Partnership disputes

When partnerships are formed, the parties will agree to how to allocate profit and losses along with other issues. As time moves on, it’s common for one party to want to negotiate the original agreement.

There are a few ways to resolve partnership disputes, including negotiation, mediation, or arbitration. However, when such alternatives prove to be fruitless or unworkable, litigation can be the only remaining choice.

Stockholder disputes

Stockholders may lose money if a company’s management makes errors in running the business. Because they worry that certain activities would negatively affect the company, investors may decide to intervene before they suffer losses. When this happens, the stockholders will often file a lawsuit, in some cases in the form of a class action.

Business owners can better manage the affairs of their companies by understanding the many types of disputes that might result in lawsuits. The more effectively they do so, the more time they will have on growing their businesses.