Commercial litigation refers to the process of resolving disputes involving business-related matters.
- Home / Services / Commercial Litigation
Commercial Litigation
Cunningham & Co. assists entrepreneurs and businesses with navigating complex commercial disputes. Whether you’re facing a contract dispute or a shareholder disagreement, our goal is to resolve your matter efficiently and effectively through negotiation, mediation, or by taking the issue to court.
What is Commercial Litigation?
Commercial litigation involves legal disputes arising from business or commercial activities. These disputes can occur between businesses, between business owners, or between a business and an individual. In British Columbia, commercial litigation is typically handled through the Supreme Court of British Columbia, although smaller matters under $35,000 may be addressed in the Civil Resolution Tribunal (CRT) or Small Claims Court.
Disputes can often be resolved through negotiation or mediation, but if informal efforts fail, it may be necessary to sue the other party and formally start a lawsuit in court to protect your rights and pursue damages or other remedies.
Most Common Situations That May Lead to Commercial Litigation
Commercial litigation can arise from a wide range of business activities, including:
- Breach of contract: Disputes over the interpretation, performance, or enforcement of business contracts.
- Shareholder and partnership disputes: Disagreements between business owners or investors over profit distribution, business management, or exit strategies.
- Real estate disputes: Disagreements involving commercial lease agreements, property ownership, or development projects.
- Strata disputes: Commercial or mixed-use strata corporations may sue businesses or commercial owners for bylaw infractions, common area costs, or property damage issues.
- Misrepresentation or fraud claims: When one party makes false statements or conceals material facts during a business transaction.
- Employment-related claims: Wrongful dismissal lawsuits or disputes over non-compete agreements.
Main Elements of a Commercial Litigation Claim in British Columbia
Although every case is unique, most commercial litigation claims require you to establish 1) the existence of a legal relationship or obligation (e.g., a contract, partnership agreement, or debt); 2) that one party has failed to meet their legal responsibilities; and 3) that this failure has caused harm or financial loss.
In some cases, you may also need to prove intent, negligence, or bad faith—especially in fraud or misrepresentation cases.
Steps to Take When a Commercial Dispute Arises
If you find yourself involved in a commercial dispute, it’s important to:
Review relevant documents
Gather contracts, emails, invoices, and written communications.
Document key facts and dates
Keep a clear record of events as they unfold.
Attempt to resolve the issue informally
Many disputes can be resolved through direct negotiation or mediation.
Seek legal advice early
A lawyer can assess your position, outline your legal options, and help you avoid missteps that might weaken your case.
Remedies Available in Commercial Litigation
When you sue someone through a commercial lawsuit in British Columbia, the remedies you can seek will depend on the nature of your dispute and the losses you’ve suffered. The most common remedy is damages, which is a monetary award intended to compensate you for financial losses caused by the other party’s breach of contract or wrongful actions. You may also be entitled to specific performance, where the court orders the other party to fulfill their contractual obligations, or injunctive relief, which prohibits them from continuing harmful or unlawful conduct. In some situations, you might sue for declaratory relief, where the court makes a formal statement about the parties’ legal rights and obligations without necessarily awarding damages.
Business partners or shareholders involved in a serious dispute may ask the court to dissolve the business, appoint a receiver, or require the buyout of a minority owner’s interest. It’s important to carefully assess your legal rights and available remedies before launching a lawsuit, as commercial litigation can be time-consuming and costly — though it remains an important and sometimes necessary step to protect your business interests.
Best Practices for Managing Business Disputes
To minimize business disruption and protect your interests:
- Act promptly: Delay can limit your legal options or strengthen the other party’s position.
- Avoid inflammatory or emotional communication: Stick to the facts and keep records of all correspondence.
- Protect sensitive business information: In commercial disputes, confidential information can quickly become exposed. A lawyer can help structure settlements or court applications to preserve confidentiality.
Common Misconceptions About Commercial Litigation
Some business owners believe:
- “All disputes must go to court.”
Not true. Many commercial disputes in BC are resolved through mediation, arbitration, or negotiated settlements without a formal trial. - “You can withhold payment or services if you’re in a dispute.”
This approach can expose you to additional legal claims, including breach of contract or damages for lost business. - “Commercial litigation is too expensive to pursue.”
While litigation can be costly, many disputes are resolved at early stages through negotiation or arbitration.
When to Hire a Commercial Litigation Lawyer
While it’s possible to represent yourself in court, commercial litigation involves complex legal principles, procedural rules, and strategic considerations. Having an experienced commercial litigation lawyer can make a significant difference in both the outcome and the efficiency of your lawsuit.
At Cunningham & Co., we assist clients with assessing whether they have a strong case to sue, evaluating potential risks of counterclaims, and determining whether starting a lawsuit is in their best business interests. We draft Legal Warning & Demand Letters, file notices of civil claim, respond to lawsuits, attend mediations and court hearings, and, where necessary, represent clients at trial or arbitration proceedings.
Whether you need to sue for unpaid debts, resolve a partnership dispute, or defend your business in court, we’re here to help.
