Many people confuse commercial litigation with civil litigation and vice versa. The commercial and civil litigation involve similar steps necessary for achieving a desired result, so it makes sense. But they are different cases that involve different types of parties.
It’s important to understand the differences between them to ensure you take the right steps and know whether you should hire a civil or commercial litigation lawyer.
That being said, let’s take a look at the two terms to see what makes them unique.
What Is Commercial Litigation
Commercial litigation cases involve businesses or companies as the two parties. It unfolds when there are any disputes within a corporate context, such as shareholder disputes, breach of contract actions, fraudulent actions, and tax disputes.
Because the issues that arise in these cases are so big, the cases tend to be quite complex. So, they take a very long time as the legal teams must carefully go through each issue, analyze every aspect and make sure they make the right decision.
All businesses settle for commercial litigation because this is what will provide them with a deep examination of the situation. As a result, they can obtain the desired results.
What Is Civil Litigation?
Civil litigation is a bit different because instead of businesses, it involves people. To put it simply, these cases start when one individual makes a claim for financial compensation from the other person. It doesn’t involve criminal charges.
Most times, civil litigation cases deal with disputes related to divorce or property, but may also be related to workplace injuries.
Unlike commercial litigation, civil litigation cases don’t take too long to resolve. On top of that, the costs involved are lower.
Similarities Between Commercial and Civil Litigation
Commercial and civil litigation are different things, but they are similar in a few ways. Some of their similarities include processes such as:
- Filing suit
- Doing research on the applicable laws
- Filing motions after the trial
- Conducting discovery
- Getting involved in settlement negotiations
- Sending demand letters and receiving them
- Hiring commercial litigation attorneys
- Putting the case before a jury or a judge
- Investigating the case based on facts
What Makes Them Different?
Even though they have a few similarities, commercial and civil litigation should not be mistaken for one another. They are completely different.
First of all, a civil litigation case involves people as the parties. Meanwhile, commercial litigation involves two businesses as the parties.
Secondly, they involve different types of disputes. Civil litigation deals with injuries resulting from workplace situations, divorce, or property matters. On the other hand, commercial litigation deals with disputes between the company and a shareholder or a contractor, or situations like breaches of contract or fraudulent actions.
There are more differences, though. Commercial litigation is more complex than civil litigation and, for this reason, such cases take a longer time to resolve. Sometimes, it may take years until a commercial litigation case ends.
And because of all the processes and details involved, commercial litigation is more expensive than civil litigation.
Fresh Information in the Commercial Litigation World
As time goes by, commercial litigation cases take longer and longer to resolve. This is because things are always changing when it comes to certain types of litigation. Some changes are:
There are more employment litigation cases than ever despite employers wishing to avoid them, and they are extremely expensive. A study shows that it takes around 275 days on average to solve employment claims. It also costs up to $125,000. The judgment is around $200,000 for claims that cannot be settled.
Cybersecurity and Data Breach Litigation
As more businesses rely on technology, there are more data breaches and cyber-attacks. In total, the average cost of global data breaches has reached $3.62 million.
The Importance of Hiring an Attorney
Whether you’re dealing with commercial or civil litigation, hiring a litigation attorney is crucial. Without a legal expert to help you out, your chances of winning the case are low.
Commercial and civil litigation attorneys know how to collect evidence, retain the right experts, preserve all relevant and electronically stored information, and advise you on what to do. Make sure to take your time choosing the right law professional to ensure the success of your case.
The Bottom Line
So, are you ready to file a commercial or civil litigation claim? Make sure you know the difference first. This way, you can hire the right litigation attorney that can advise you throughout the entire process.