Commercial litigation in Canada is a complex and multifaceted area of law. It involves disputes between organizations, individuals, businesses, and other issues relating to contracts, torts, and other aspects of business and commercial law. Commercial litigation helps both parties to settle and handle their business or commercial-related disagreements in a way that is beneficial for them as well as for the companies they represent.
There are only certain disputes and legal issues in a commercial context that come under the jurisdiction of commercial litigation. They’re not only complex and difficult to win but can also be quite expensive and time-consuming to resolve. Canada’s legal system follows several laws and administrative bodies that govern a wide range of business and commercial activities and transactions across the country.
Read on to learn about commercial litigation and its important aspects, including the legal framework, types, impact, process, and role of litigation lawyers.
What is Commercial Litigation
Commercial litigation is a type of civil legal proceeding involving a dispute arising from business transactions. These cases deal with business and commercial matters like contracts, property disputes, construction disputes, employment issues, etc. In a commercial litigation case, one party sues another party for financial compensation or some other remedy based on alleged wrongdoing by the other party.
In Canada, disputes related to commercial dealings can be filed either in the Small Claims Court or in the Supreme Court of British Columbia. Small Claims Court is a special court designed to help people resolve disputes quickly and efficiently without having to obtain a litigation lawyer’s assistance. It provides an alternative option to dispute resolution that is cheaper and more convenient than conventional legal actions. On the other hand, the Supreme Court of British Columbia hears more complex and complex cases. These include civil appeals such as breach of contract cases, fraud and misrepresentation cases, breach of fiduciary duty cases, and many others.
Some of the laws that govern commercial dealing in Canada are;
- Ontario Partnerships Act
- Canada Business Corporation Act
- Sale of Goods Act
- The Competition Act
- Bankruptcy and Insolvency Act
It allows businesses to enforce their rights and take action in cases where the rights and interests of their clients are violated. However, the process can be long and convoluted and requires an experienced litigator to take the case all the way to trial. That’s why it is important to hire a litigation lawyer if you have reason to believe that your business has been involved in a breach of contract or other issues.
Commercial Litigation Process
The process of commercial litigation in Canada depends on the type of case involved and the severity of the allegations. It is generally divided into two phases—pretrial and trial. Here are the steps in the commercial litigation process:
Exchange of Claims
It begins with the filing of a statement of claim, which sets out the facts and legal claims on which the party intends to base its claim. The defendant then files a statement of defence in which they respond to the allegations contained in the statement of claim. The exchange in pleading between the plaintiff and the defendant takes place after they both complete their statements of claim and defence. The suing party can also serve the responding party with a notice of motion requesting specific relief or the production of certain documents such as financial statements, balance sheets, tax returns, invoices, etc.
This is followed by the service of pleadings on the parties and the exchanging of documents between the parties.
Discovery
The parties then engage in discovery which involves the exchange of documents and the taking of depositions of the parties, witnesses, and experts. Depositions are recorded sworn testimonies given under oath by a witness at a deposition before an official appointed by the court who takes down the testimony of the witness for later use at trial.
Conference Before Trial
Once the parties have completed discovery, the matter will proceed to a pretrial conference, where the court will schedule dates for the commencement of trial and assist the parties in settling the case.
Trial
During the trial, the Judge will hear arguments from counsel and make his decision at the conclusion of the trial. If a party is unhappy with the decision of the Judge, they may appeal the decision to the Court of Appeal or the Supreme Court of Canada.
Commercial Litigation vs Civil Litigation
Although there are similarities between commercial litigation and civil litigation, there are also some important differences. These differences are in the processes and practices involved in bringing a case to court as well as the way cases are decided.
Unlike commercial litigation, civil litigation does not take place in a courtroom in front of a specialized judge or a magistrate; instead, it takes place in a courtroom in front of a clerk of the peace. Moreover, the parties may be represented by lawyers with expertise in other areas of law, such as personal injury or family law.
Commercial litigation parties are represented by specialized lawyers who are well-versed in corporate law and other legal issues surrounding it. With the aid of expert witnesses, if necessary, these lawyers will try to prove their client’s case to the court and craft a winning strategy to attain the best possible outcome for their clients.
Role of Litigation Lawyers
A lawyer with extensive experience and expertise in commercial litigation will represent clients in these types of cases and guide them through the different stages of litigation. They have a better understanding of the procedural requirements involved in these cases as compared to a lawyer with experience in other areas of law. They also provide legal advice to their clients on their rights and obligations.
From pretrial to post-trial stages, a lawyer experienced in commercial litigation will guide their clients through the entire litigation process and ensure that their case is prepared in the best way possible.
Here are some other responsibilities that experienced litigators assume for their customers.
Conducting Legal Research
Understanding the law and conducting research are two critical components of effective legal representation. To help their clients with their legal problems, lawyers will spend a lot of time doing research. From pleadings, motions, and briefs, to case law and research materials, they will make sure that they have all the necessary information before proceeding with the case.
Representing the Client
While conducting legal research is important, lawyers also need to make sure they professionally present themselves in court proceedings.
Negotiating the Deal
After gathering all the relevant evidence and preparing their defence, lawyers representing clients will need to negotiate with the other party involved in the case and try to reach an out-of-court settlement.
Collaborating with Experts
Commercial litigation cases can be complicated and require the assistance of experts in various fields of law. Your litigation lawyer will collaborate with technical specialists to provide specialized analysis and testimony in support of your case.
Impact of Getting into a Commercial Litigation
Commercial litigation in Canada process can have a significant impact on the business and its ability to carry out its operations. It can lead to financial loss or the loss of a lucrative business opportunity if the dispute is not resolved satisfactorily. Moreover, it can also damage the reputation and the diversion of resources. This is why it’s crucial to have an experienced lawyer on your side during this critical period of your business’s development.
Here are some possible outcomes of a dispute and the impacts on your business if you don’t have a competent lawyer:
Financial Loss
Legal fees, damages, and other costs associated with a case can significantly impact the financial stability of your business. Whether you go to trial or settle out of court, you will be required to assess your resources to determine how much you can afford.
Business Interruption
Having a professional legal counsel can ensure that you do not unknowingly infringe upon another party’s property rights, waste time in court, or incur additional costs that may not be covered by your insurance.
Reputation Damage
As a small business owner, your reputation can mean the difference between staying in business and closing down due to a legal case. An experienced lawyer can help you avoid causing further damage to your business by participating in negotiations, responding to the public, and developing a defence strategy.
Are you looking for knowledgeable litigation lawyers in Canada? At Nanda & Associate Lawyers, we have experienced commercial litigation lawyers, real estate lawyers, and civil litigation lawyers. We’re committed to helping our clients and providing effective solutions for all legal concerns.
Book an appointment with us today, or contact us to learn more about our services.
Disclaimer: This article is only intended for educational purposes and shouldn’t be used as a substitute for legal advice.
