6 Common Types of Civil Litigation
Civil litigation can be extremely complex; therefore, if you are involved in a lawsuit as the plaintiff or defendant, you may want to contact one of the experienced civil litigation attorneys at Bingaman Hess. Failing to understand your rights could potentially expose you to significant risks.
What is Civil Litigation?
Civil litigation is a legal process that attempts to resolve disputes between individuals, businesses, or other entities that are not based on criminal actions. In civil litigation, the plaintiff (the person filing the claim) seeks monetary compensation (known as damages) or a specific action from the defendant (the person being sued). Many types of cases fall under the umbrella of civil litigation.
6 Common Types of Civil Litigation
It is nearly impossible to list every type of civil action, but here is a description of a few of the more common types of civil litigation:
- Breach of Contract
A breach of contract occurs when someone breaks the terms of a binding contract, which can be written or oral. Missed payments and failure to deliver are typical examples of a breach of contract. For example, if you sign a lease that states you are to pay $1,000 in rent on the first of each month but fail to do so, that is a breach of contract. Or, if you pay a contractor to remodel your kitchen, but they do not finish the work, that is a breach of contract.
- Personal InjuryThe American Bar Association (ABA) explains, "Personal injury law, also known as tort law, is designed to protect you if you or your property is injured or harmed because of someone else's act or failure to act. In a successful tort action, the one who caused the injury or harm compensates the one who suffered the losses."
- Commercial Litigation
Commercial litigation is a dispute between businesses and individuals (i.e., a customer or employee and a business) or between two or more businesses (i.e., a vendor and a business). Some examples of commercial litigation include copyright or trademark infringements, fraud, wrongful discharge, breach of contract or warranty, and deceptive trade practices.
- Class Action Litigation
"A class action is a procedural device that permits one or more plaintiffs to file and prosecute a lawsuit on behalf of a larger group, or 'class,'" Cornell Law School explains. "Put simply, the device allows courts to manage lawsuits that would otherwise be unmanageable if each class member (individuals who have suffered the same wrong at the hands of the defendant) were required to be joined in the lawsuit as a named plaintiff."
- Real Estate Disputes
Real estate disputes often occur between buyers and sellers of residential properties, homeowners and contractors or subcontractors, or landlords and tenants. Examples of this type of dispute include boundary disputes, breach of contract, seller's failure to disclose a defect, breach of fiduciary duty or negligence, title disputes, construction defects, and real estate fraud.
- Debt Collection
This type of civil litigation is what it sounds like. Investopedia explains, "A debt collection lawsuit occurs when a creditor files a petition with the court to initiate a lawsuit against a borrower who owes them money."
Put Experience on Your Side!
Regardless of what type of civil litigation you are involved with, achieving success requires extensive knowledge of the law, the court system, and an often complex litigation process, along with skillful planning. Whether you are the plaintiff or defendant, the experienced legal team at Bingaman Hess will thoroughly analyze your situation, provide knowledgeable guidance, and offer all available options to help achieve your desired outcome.
Put the power of our experienced civil litigation attorneys on your side by calling us at
610.374.8377 or finding us online.
News & Information
Business succession planning is an important process that helps business owners prepare for the upcoming transfer of ownership and leadership. Whether the transition involves passing the company to family members, selling to business partners or transferring ownership to outside buyers, having a clear succession plan helps reduce uncertainty and protect the long-term security of the business. A careful plan can also minimize disputes, preserve business value and ensure continuity in periods of change. Planning for Business Transfer The first step in business succession planning is identifying how the business will be transferred and who will assume control. Business owners should evaluate their long-term goals, retirement plans, and the financial needs of both the company and their family members. Some owners choose to pass the business on to children or relatives who are already involved in operations. Others may transfer ownership to key employees, business partners or third party buyers. Each option has different legal, operational and financial consequences. A successful transition often takes years of preparation. Potential successors may need leadership training, operational experience and gradual increases in responsibility to ensure they are ready to effectively manage the business. Good communication with family members, partners and stakeholders is also important to avoid misinterpretations and conflict. Business owners should work with legal and financial professionals to create formal succession documents, update corporate records, and establish a realistic timeline for the transfer process. Use of Buy-Sell Agreements Buy-sell agreements are an essential part of many succession plans. These legally binding agreements specify what happens to the interest of a business owner if certain events occur, such as retirement, disability, death or voluntary departure from the company. A buy-sell agreement typically defines who may buy the shares of the departing owner, how the business interest will be valued and the terms of payment. This structure helps maintain stability and prevents ownership disputes that could disrupt operations. For businesses with multiple owners, buy-sell agreements provide understanding and protections for all parties involved. They can prevent unwanted external ownership and ensure that remaining owners retain control of the company. Funding mechanisms are also important. Many businesses use life insurance policies to fund buyouts in the event of an owner's death. This allows surviving owners or family members to complete the transfer without putting financial hardship on the business. Tax Considerations Tax planning is an important part of business succession planning. If the transfer of ownership is not well planned, the business owner and successor will face a substantial tax liability. Depending on how the transfer takes place, the owners may face capital gains, estate, or gift taxes. With good planning, these tax burdens can be reduced with trusts, step-by-step ownership transfers, family partnerships, or changing the type of business entity. Another important factor is valuation. A proper valuation of a business is important for determining tax liability and ensuring that everyone involved in the transfer is treated fairly. Business owners should regularly review their succession plans with accountants, tax advisors, and attorneys, as tax laws are often changing. Regular updates keep the plan in line with changing legislation and the business’s needs. Let Us Help You Navigate the Essentials of Business Succession Planning Don’t wait! Talk to one of the experienced estate planning attorneys at Bingaman Hess today at 610.374.8377 or contact us online. This article is for informational purposes only and does not constitute legal advice. No one may rely on this information without consulting an attorney. Anyone who attempts to use this information without attorney consultation does so at their own risk. Bingaman Hess is not and shall never be responsible for anyone who uses this information. It is not legal advice.
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