The main difference between commercial and civil litigation is that commercial litigation involves corporations, and the civil side deals with lawsuits between individuals. This may sound simple, but when dealing with multiple parties, each type of litigation can become extremely complex. Here are some of the differences and similarities between civil and commercial litigation.
Both commercial and civil litigation will include the same processes, here are a few:
- Searching for laws that apply
- Filing lawsuits
- Placing the case before a jury
- Negotiating settlements
- Working mainly with litigation attorneys that work commercially
- Conducting discovery
These two types of litigation differ in how complex they can become. Rather than working with a single individual, corporations can be far more sophisticated and their impacts more expansive. Often, this type of litigation is filed in the federal courts and will be a class action or litigation that deals with multiple districts. Commercial dealings can also take unprecedented paths that have the capacity to last for years longer than a civil litigation case. Commercial litigation can also become much more expensive due to the number of people involved, as well as the cost of experts and discovery.
The Complexity of Commercial Litigation
These are many different reasons for commercial litigation:
- Tax Disputes
- Product Liability
- Partnership Disputes
- Land Use, Real Estate, and Environmental Litigation
- Business Torts
- Aviation Disputes
- And many more
Commercial litigation has evolved throughout the years. Here are examples of types of commercial litigation cases that have grown at a rapid rate.
1. Employment Litigation
Employment litigation cases can become expensive, lengthy, and have the potential to ruin the reputation of an employer. Despite this fact, they are becoming more and more common.
2. Securities Class Action (SCA)
This type of lawsuit is usually spurred by false statements or omissions made by an organization with publicly-traded securities that cause investors to lose money. Plaintiffs have filed 270 federal security back in 2016 and the number is continually increasing. It is also shown that 3.9% of the United States exchange-listed corporations were involved in filings in 2016.
3. Cybersecurity and Data Breach Litigation
Because of the frequency and number of data breaches and cybersecurity attacks, the number of litigation cases regarding cybersecurity has risen drastically. IBM recently published statistics about the cost of a data breach for an organization, stating that the average cost of a global data breach is over 3.5 million dollars.