At Travis & De Blase LLP, we represent businesses and business owners in complex litigation matters throughout New York. Below are answers to questions our clients frequently ask about business litigation in New York.
What is business litigation?
Business litigation refers to legal disputes that arise in the context of commercial and business relationships. These disputes can involve breach of contract claims, partnership and shareholder disputes, fraud and misrepresentation, breach of fiduciary duty, tortious interference with business relationships, unfair competition, and a wide range of other claims. Business litigation is typically handled in New York Supreme Court, the Commercial Division, or federal court, depending on the nature and amount of the claims involved.
When should I hire a business litigation attorney?
You should consult a business litigation attorney as soon as you become aware of a potential dispute that could affect your business. Early legal involvement can help preserve evidence, protect your rights, and often resolve matters before they escalate into full litigation. If you have received a demand letter, a summons and complaint, or a notice of arbitration, engaging counsel immediately is essential. Even before a formal dispute arises, consulting an attorney when you suspect a breach of contract, fraud, or other wrongdoing can help you take proactive steps to protect your position.
What courts handle business litigation in New York?
Business disputes in New York are primarily heard in New York Supreme Court, which is the state’s trial court of general jurisdiction. For complex commercial cases, the Commercial Division of the Supreme Court handles disputes involving claims typically exceeding $500,000 in New York County. Federal courts in the Southern and Eastern Districts of New York handle business disputes that involve federal questions or diversity of citizenship. Many business agreements also include arbitration clauses that require disputes to be resolved through private arbitration rather than in court.
How long does business litigation take in New York?
The timeline for business litigation varies significantly depending on the complexity of the case, the court in which it is filed, and whether the parties engage in settlement negotiations. A straightforward breach of contract case might resolve in 12 to 18 months, while complex commercial disputes involving multiple parties, extensive discovery, and expert testimony can take two to four years or longer. Cases in the Commercial Division tend to move more efficiently due to active judicial management. Alternative dispute resolution methods, such as mediation and arbitration, can often achieve resolution more quickly than traditional litigation.
What damages can I recover in a business litigation case?
The damages available in business litigation depend on the nature of the claims. Compensatory damages are designed to make the injured party whole by covering actual financial losses, including lost profits, out-of-pocket expenses, and the cost of the benefit of the bargain. Consequential damages may be available for foreseeable losses that flow from the breach or wrongful conduct. In cases involving fraud or egregious conduct, punitive damages may be awarded to punish the wrongdoer and deter similar behavior. Equitable remedies, such as injunctions and specific performance, may also be available in appropriate cases.
Can I recover attorney’s fees in a business dispute?
In New York, the general rule is that each party bears its own attorney’s fees, regardless of who prevails. However, there are important exceptions. If the contract at issue contains an attorney’s fees provision, the prevailing party may recover its fees pursuant to that provision. Certain statutes also authorize fee-shifting in specific types of cases. Additionally, in cases involving frivolous litigation conduct, the court may award sanctions that include attorney’s fees. When entering into business agreements, including an attorney’s fees clause can be an important strategic decision.
What is the statute of limitations for business litigation claims in New York?
The statute of limitations varies by claim type. Breach of contract claims have a six-year statute of limitations in New York. Fraud claims must be brought within six years of the fraudulent act or two years from the date the fraud was discovered or should have been discovered, whichever is longer. Breach of fiduciary duty claims may have a three-year or six-year statute of limitations depending on the remedy sought. Tortious interference and other tort-based business claims generally have a three-year limitations period. Because missing the statute of limitations can permanently bar your claims, consulting an attorney promptly is critical.
Should I try to settle my business dispute or go to trial?
Most business disputes settle before trial, and settlement is often the most efficient and cost-effective resolution. However, settlement is not always appropriate, particularly when the other side is acting in bad faith, the disputed amount is significant, or important business principles are at stake. An experienced business litigation attorney can help you evaluate the strengths and weaknesses of your case, assess the likely range of outcomes at trial, and determine whether settlement or trial best serves your interests. At Travis & De Blase LLP, we prepare every case as if it will go to trial, which strengthens our negotiating position and ensures we are ready for any outcome.
What should I look for in a business litigation attorney?
Look for an attorney with substantial experience handling the specific type of business dispute you are facing. Experience in New York courts, particularly the Commercial Division, is valuable for complex cases. You want an attorney who is responsive, communicates clearly, and takes the time to understand your business objectives — not just the legal issues. Litigation strength matters, but so does business insight. Your attorney should understand how the litigation fits into your broader business strategy and should be focused on achieving the best practical outcome, not just winning legal arguments.
Learn More
For a comprehensive overview of our practice, visit our Business Litigation page. You may also find our guide on Breach of Fiduciary Duty in New York helpful.
How do I get started with Travis & De Blase LLP?
Contact us to schedule a consultation. We will discuss the facts of your situation, explain your legal options, and provide our candid assessment of the best path forward. You can reach us by calling (212) 248-2120 or emailing info@travisdeblase.com. Our offices are located at 40 Wall Street, Suite 2508, New York, NY 10005.