A practical guide to managing commercial disputes
Navigating through a commercial dispute can be a confusing and stressful process. Whether it’s a dispute with an online business or a contractual disagreement, it’s crucial to know how to manage it effectively.
Our forensic accounting team has prepared an article on the subject to keep you informed and prepared for any eventuality.
Definition of a dispute
When we use the term litigation, we mean any dispute between two or more parties who wish to go to court.
There are many different types of dispute, both civil and corporate. There are several types, such as commercial disputes, matrimonial disputes, disputes with your insurers, civil disputes and so on. Every situation is different. What do you have to do to get your money back, or how do you file a complaint? What is the role of the court in these situations? Read on to find out more.
How do you manage and settle a commercial dispute?
Contact your stakeholders
In the context of a commercial dispute, dispute resolution begins with communication with your stakeholders. These parties may be companies, such as customers, suppliers and business partners, or they may be individuals, such as employees. They may even include regulatory bodies.
Here are our strategic tips, divided into stages, to help you get started:
- Identify your stakeholders;
- Define your goals;
- Find out more about your audience and refine your communication methods;
- Plan the frequency of your communications.
When resolving disputes, clear and transparent communication is essential to managing the dispute effectively. This could involve:
- Inform stakeholders and their representatives of the existence of the dispute, respecting all requests and confidentiality obligations;
- Explain the steps involved in resolving the dispute;
- Be open to their concerns and suggestions.
Good expectation management can help mitigate negative reactions and maintain a constructive working relationship during the resolution process. To this end, we recommend that staff responsible for managing these communications be properly trained.
How do you settle a commercial dispute (with or without a commercial lawyer)?
When the first stage of contact doesn’t produce the desired results, a third party – sometimes a lawyer, sometimes another person – can act as mediator. The mediator’s role is to lead negotiations between you and the other parties to finalize the agreement.
Commercial mediation has the advantage of being confidential and reducing reputational risks. When conflicts cannot be resolved organically, contact an expert to avoid information leaks and stakes for subsequent steps.
Conciliation
Conciliation is a procedure for the amicable settlement of disputes. After listening to the parties, the lawyer proposes solutions that the parties are free to accept or reject. If not, they can continue with the other steps involved in resolving the conflict.
And what if nothing works?
In the event of a commercial dispute not resolved by mediation or conciliation, it may be necessary to resort to legal proceedings. Arbitration is also an option. This method, outside the traditional judicial framework, enables the parties to choose an impartial arbitrator to settle the dispute. It offers the advantages of speed, confidentiality and flexibility.
To settle a commercial dispute, where do I file a complaint and in which court?
If arbitration is unsuccessful, recourse to the courts becomes inevitable. The choice of court (the Administrative Tribunal of Quebec, the Civil Division, the Criminal and Penal Division, the Superior Court, etc.) depends on the nature of the dispute and the parties involved. A lawyer specialized in commercial litigation can help you navigate these procedures.
- Consulting a lawyer: A specialized lawyer can advise you on the best strategy for your specific situation.
- Filing a complaint: If attempts at amicable resolution fail, you can file a complaint with the appropriate court.
- Judicial follow-up: Finally, it is essential to follow the judicial process carefully, including hearing dates, and to respond promptly to all court requests.
In all cases, it is essential to keep accurate and complete documentation of all your interactions, requests and transactions related to the dispute.
Where do I go if I have a commercial dispute?
When a financial dispute arises, our forensic accounting team can prepare expert reports and act as expert witnesses for the courts in dispute resolution.
Demers Beaulne’s forensic accounting team could, for example, quantify the damages incurred and the additional costs (damages) in the event of a breach of contract or any other situation.
We also offer assistance to companies that have suffered a loss. Our intervention helps to protect your interests and ensure sound risk management. Contact us for more information.
More questions? We have the answer.
Which court has jurisdiction over commercial disputes?
In Quebec, jurisdiction over commercial disputes is divided between two courts, depending on the value at stake:
- The Court of Québec handles disputes under $85,000
- Superior Court handles disputes of $75,000 or more
For disputes between $75,000 and $100,000, the plaintiff can choose between the two courts. The Superior Court also has exclusive jurisdiction over certain types of commercial litigation, such as injunctions and class actions.
What is civil and commercial litigation?
Civil and commercial litigation are legal disputes that may arise between individuals, companies or both. Civil litigation concerns disputes between private individuals or legal entities governed by civil law (such as contracts, obligations or liability), while commercial litigation deals specifically with disagreements related to business activities, such as :
- Breach of commercial contracts
- Conflicts between shareholders
- Disputes between business partners
- Banking and financial disputes
- Commercial damage claims
- Intellectual property disputes
These disputes differ from criminal law in that they pit private parties against each other, rather than the State against a defendant.
What types of disputes are involved?
The main types of disputes fall into several categories:
Civil disputes
- Disputes between private individuals
- Family and matrimonial disputes
- Neighborhood disputes
- Rental disputes
Commercial disputes
- Conflicts between companies
- Contractual disputes
- Shareholder disputes
- Intellectual property disputes
Administrative disputes
- Conflicts with the State
- Challenging administrative decisions
- Tax disputes
Consumer disputes
- Conflicts with retailers
- Insurance disputes
- Warranty claims
Labor disputes
- Employer-employee conflicts
- Challenging dismissals
- Wage disputes
What is an example of a commercial dispute?
A typical example of a commercial dispute is when a company fails to meet the delivery deadlines agreed in a contract, causing financial loss to its customer who had planned a promotional campaign around these deadlines.
