Travis & De Blase LLP handles complex commercial litigation matters for businesses throughout New York. Below are answers to frequently asked questions about commercial litigation.
What is the difference between business litigation and commercial litigation?
The terms are often used interchangeably, but commercial litigation typically refers to disputes arising from commercial transactions and business operations that involve significant financial stakes. Commercial litigation often involves breach of contract claims related to complex business agreements, fraud and misrepresentation in commercial dealings, disputes over business valuations and earn-out provisions, unfair business practices and tortious interference, trade secret misappropriation and non-compete enforcement, and commercial real estate disputes. The Commercial Division of the New York Supreme Court was specifically established to handle these types of high-value, complex commercial cases with specialized judges and expedited procedures.
What is the Commercial Division of the New York Supreme Court?
The Commercial Division is a specialized part of the New York Supreme Court dedicated to handling complex commercial disputes. It was created to provide more efficient resolution of high-stakes business cases through judges with expertise in commercial law, streamlined procedures, and active case management. In New York County (Manhattan), the Commercial Division generally hears cases involving claims of $500,000 or more. The Commercial Division has its own set of rules that supplement the standard court rules, including mandatory electronic filing, expedited discovery schedules, and limitations on certain types of motions. Cases assigned to the Commercial Division tend to be resolved more efficiently than those in the general civil part of the Supreme Court.
What types of commercial disputes does Travis & De Blase handle?
Our commercial litigation practice covers a broad range of disputes, including breach of contract claims arising from commercial agreements such as purchase agreements, distribution agreements, licensing agreements, and joint venture agreements. We handle fraud and misrepresentation claims in connection with business transactions, shareholder and member disputes in closely held companies, commercial real estate disputes including lease disputes, development disputes, and purchase and sale disputes, trade secret and confidential information disputes, and claims involving tortious interference with contractual or business relations.
How much does commercial litigation cost?
The cost of commercial litigation depends on the complexity of the case, the amount at stake, the number of parties involved, and whether the case proceeds through trial or settles earlier. We provide clients with transparent fee arrangements and work to develop litigation strategies that are proportionate to the stakes involved. For some matters, hourly billing is most appropriate. For others, alternative fee arrangements such as flat fees for specific phases of litigation, blended rates, or contingency arrangements may be available. We discuss fee arrangements candidly at the outset of every engagement so that our clients can make informed decisions about how to proceed.
Can I get an injunction to stop a competitor or former partner from harming my business?
Yes, in appropriate circumstances. New York courts can issue preliminary injunctions and temporary restraining orders to prevent ongoing or imminent harm to your business. To obtain a preliminary injunction, you generally must demonstrate a likelihood of success on the merits of your claims, a risk of irreparable harm if the injunction is not granted, and that the balance of equities favors granting the injunction. Common scenarios where injunctive relief is sought include enforcement of non-compete and non-solicitation agreements, prevention of trade secret misappropriation, stopping a former partner from competing in violation of a partnership agreement, and preventing the dissipation of business assets during a dispute. These applications are time-sensitive and require swift, decisive action by experienced counsel.
What is the discovery process in commercial litigation?
Discovery is the pre-trial phase of litigation where each party obtains evidence and information from the other side. In commercial litigation, discovery typically involves document production, where parties exchange relevant business records, emails, financial documents, and other materials. It includes depositions, where key witnesses provide sworn testimony that can be used at trial. Interrogatories are written questions that the other party must answer under oath. Requests for admission ask the other party to admit or deny specific facts. Discovery in commercial cases can be extensive and is often the most time-consuming and expensive phase of litigation. The Commercial Division’s rules help manage this process by imposing limits on discovery and encouraging the use of technology for document review and production.
What is the difference between mediation and arbitration?
Mediation is a voluntary, non-binding process in which a neutral mediator helps the parties negotiate a settlement. The mediator does not make a decision or impose a resolution; the parties retain full control over whether to settle and on what terms. Arbitration, by contrast, is a binding process in which one or more arbitrators hear evidence and arguments from both sides and issue a decision (called an award) that is final and enforceable. Many commercial contracts include mandatory arbitration clauses that require disputes to be arbitrated rather than litigated in court. Both processes offer advantages over traditional litigation, including privacy, speed, and reduced costs, but the right approach depends on the specific circumstances of your dispute.
What happens if I am sued by a business partner or shareholder?
If you are sued, you will typically receive a summons and complaint that must be answered within a specific timeframe — generally 20 or 30 days depending on how you were served. Failing to respond can result in a default judgment against you. It is critical to engage an attorney immediately upon receiving a summons. Your attorney will review the claims, assess your defenses and potential counterclaims, and develop a litigation strategy. In many business partner and shareholder disputes, both sides have legitimate claims against the other, and a strong defense often includes asserting counterclaims that put pressure on the plaintiff to negotiate a reasonable resolution.
Can I sue for lost profits in a commercial dispute?
Yes, lost profits are a common form of damages in commercial litigation, but they must be proven with reasonable certainty. New York courts require that lost profit claims be supported by credible evidence, such as historical financial data, industry benchmarks, expert economic analysis, and a clear causal connection between the wrongful conduct and the lost profits. Speculative or uncertain lost profit claims may be rejected. For new businesses without a track record of profits, proving lost profits can be more challenging but is not impossible, particularly with strong expert support. An experienced commercial litigator can help you build a persuasive damages case that maximizes your recovery.
Learn More
For a comprehensive overview of our practice, visit our Commercial Litigation page. You may also find our guide on Breach of Fiduciary Duty in New York helpful.
How do I contact Travis & De Blase LLP about a commercial dispute?
Call us at (212) 248-2120 or email info@travisdeblase.com to schedule a consultation. Our offices are at 40 Wall Street, Suite 2508, New York, NY 10005. We will review the facts of your dispute and provide a candid assessment of your options.