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Understanding the Difference Between Commercial and Business Litigation

Updated: February 13, 2023

Est. Reading: 4 minutes

It is typical to make the mistake of using the terms commercial litigation and business litigation interchangeably. This may be due to the fact that both categories of litigation involve businesses as the parties involved in a dispute. Though both are types of business-related disputes, they are distinct from one another.

In this article, we hope to help you understand the difference between commercial and business litigation. For more information, call our dedicated business law attorney Patrick Monahan today!

What Is Commercial Litigation?

Commercial litigation is a broad term that refers to the process of resolving disputes between parties who are involved in a commercial transaction or activity. The transaction here could be the sale of goods or services, commercial paper, the purchase of real estate, or a contractual agreement. This type of dispute resolution involves seeking judicial assistance to settle the dispute and can include a wide range of legal claims such as breach of contract, fraud, negligence, and business torts.

gavel on top of a book of commercial law

The essential thing to note is that litigation being considered must be 'commercial' in nature. Meaning that the dispute must relate to 'commerce' which is a legal word for 'trade' which is broadly defined as the exchange of goods, services, or money. To learn more about commercial litigation, call our top Phoenix commercial litigation attorney at Monahan Law today!

Examples of commercial lawsuits include the following:

  • Intellectual Property
  • Sale of goods
  • Commercial landlord/tenant disputes
  • Contract disputes
  • Leases
  • Unfair competition
  • Consumer Fraud 

What Is Business Litigation?

Business litigation is a legal term used to describe disputes between two or more parties that are involved in a business-related activity. It often deals with issues concerning the legal regulations and protocols related to setting up and running a business. This could involve lawsuits that arise between businesses and governmental bodies, such as cases that involve taxation or workplace safety.

With millions of transaction and commercial disputes occurring each year, it is important understanding the difference between commercial and business litigation. Call Monahan Law today at (623) 300-2727!

Also, as an aspect of business litigation, disputes among shareholders and directors can often require this sort of legal action to settle disagreements. In any case, business litigation is necessary to resolve conflicts between parties when it comes to the legal aspects of running a business.

Types of business litigation include the following:

Is Business Law and Commercial Law the Same?

It must be emphasized that although both commercial law and business law are related, they are not the same. Commercial law is a type of law that deals with contracts, trade practices, and transactions, while business law is the body of laws that govern how businesses operate and relate to other entities.

The key differences between business litigation and commercial litigation are clear, but it is important to understand the distinction in order to ensure that you can find the best form of dispute resolution for your particular needs.

Regulations and Statutes Governing Business Litigation and Commercial Litigation

In the United States, business litigation and commercial litigation are both governed by applicable federal and state laws. Depending on the nature of the dispute, the rules, regulations, and statutes can vary from one jurisdiction to the next.

Uniform Commercial Code (UCC):

The UCC is a set of uniform commercial laws that have been adopted by all states in some form or another. This code provides regulations and statutes for both business and commercial litigation. It generally governs the sale of goods, leases, and commercial transactions.

a gavel with all the different aspects of business litigation law

Expectedly, there are other state and federal regulations that govern business entities such as corporations, limited liability companies, and partnerships. It provides rules and regulations for the formation, dissolution, management, and reporting of business entities. Some also regulate certain aspects of the business world including securities, employment issues, and antitrust laws. These statutes can all be used in business litigation when necessary.

The attorneys representing the parties involved in business litigation or commercial litigation must be knowledgeable and experienced in the laws applicable to the dispute. This is why it is important to consult with an experienced Glendale business litigation attorney when dealing with either type of dispute.

Other Types of Business and Commercial Litigation

In addition to the two main types of business and commercial litigation, there are many other areas that may require legal assistance. These can include disputes between employers and employees, labor regulations, consumer protection laws, and antitrust litigation.

Learn More: Understanding the Business Litigation Process in Arizona

These types of disputes can involve a wide range of issues such as wrongful termination, discrimination and harassment in the workplace, breach of contract, and intellectual property disputes. As with business litigation and commercial litigation, it is important to seek the advice of an attorney, with legal experience, when dealing with any type of business or commercial dispute.

Contact Monahan Law Firm Today For Your Business Litigation Needs!

In summary, commercial litigation and business litigation are two distinct categories of legal disputes. While both involve businesses as the parties involved and are related in that they both involve legal aspects of running a business, they should not be confused with one another. The primary distinction lies in the dispute being resolved, as to whether it relates to ‘commerce’ or to the legal aspects of operating a business.

At Monahan Law, our experienced business litigation lawyers are familiar with both areas of law and have extensive experience in successfully representing clients in all types of business and commercial litigation. If you have a legal dispute that requires effective representation, contact Monahan Law today to book a consultation at (623) 300-2727. Our attorneys can provide you with the legal advice and guidance needed to get a successful outcome in your case.

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Attorney Patrick Monahan

Patrick Monahan

Patrick Monahan is the managing partner of Monahan Law Firm, PLC. Patrick began his legal career practicing real estate, construction, and general business litigation.
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