How Does the Litigation Process Work in Business Disputes?
As business owners or managers, it’s essential to understand how the litigation process works to make informed decisions about how to proceed when a conflict arises. The litigation process for business disputes in Michigan, like any state, follows a systematic set of steps designed to move the dispute from initial filing to a potential resolution.
Whether you’re facing a contract dispute, shareholder disagreement, intellectual property claim, or another type of business dispute, knowing what to expect can reduce stress and increase your chances of a favorable outcome.
At Confidant Consult, PLLC, located in Grand Rapids, Michigan, we have seen firsthand how a well-managed litigation process can help resolve business disputes. Here’s a closer look at how the litigation process works in business disputes.
Initial Consultation With an Attorney
Before proceeding with litigation, the first step is often to consult with an attorney who handles business disputes. Here's what your consultation entails:
Case evaluation: We’ll examine the facts and circumstances of the business dispute.
Legal options: We’ll explain the litigation options available, including potential settlement or court action.
Costs and timeframe: We’ll give you an estimate of how long the process might take and the costs involved.
Decision-making: We’ll help you decide whether litigation is the best route or if alternative dispute resolution (ADR), such as mediation or arbitration, might be more appropriate.
At Confidant Consult, PLLC, we start by thoroughly understanding your situation. This consultation is an opportunity for us to assess your case, discuss the potential for resolution, and determine the best strategy moving forward.
Filing a Complaint
Once you’ve decided to move forward with litigation, the next step is filing a complaint. This legal document is a formal request to the court to resolve the dispute. The complaint outlines the issues at hand, the relief sought, and the legal basis for your claims.
The complaint includes the following:
Description of the dispute: We’ll clearly outline the nature of the dispute and the facts leading to the conflict.
Legal claims: We’ll identify the legal grounds for your claim, such as breach of contract, fraud, or unfair business practices.
Requested relief: Whether it's damages, injunctions, or specific performance, we’ll articulate what you seek from the court.
Defendant details: The complaint will include information about the defendant (the party being sued), making sure they are properly notified.
Filing a complaint officially begins the litigation process in Michigan and signals the start of the court’s involvement in resolving the issue.
Serving the Complaint
Once the complaint is filed, it must be served to the other party, or the defendant. This step is vital because it formally notifies the other party of the lawsuit. In Michigan, this typically means delivering the complaint to the defendant either in person or through certified mail.
Here's how the complaint is served:
Personal service: A process server delivers the complaint directly to the defendant.
Certified mail: If personal service isn’t possible, the complaint may be sent through certified mail to make sure the defendant receives it.
Once served, the defendant has a set time frame to respond to the complaint.
Defendant's Response
After being served, the defendant has a set period, usually 21 days, to file a response to the complaint. In Michigan, this response is typically called an "answer." In the answer, the defendant will address the allegations made in the complaint and may present defenses or counterclaims.
The defendant's response might include the following:
Admissions or denials: The defendant will either admit or deny the allegations made in the complaint.
Defenses: The defendant may argue that the claims aren’t valid due to legal defenses.
Counterclaims: The defendant may file counterclaims if they believe the plaintiff has harmed them.
If the defendant fails to respond within the time frame, a default judgment could be entered in favor of the plaintiff.
Discovery Process
Discovery is the phase where both sides exchange information to better understand the other’s position. This process makes sure that both sides have access to the necessary evidence and information to make informed decisions as the case progresses.
Key components of discovery include:
Interrogatories: Written questions the other party must answer under oath.
Depositions: Out-of-court testimony where witnesses are questioned under oath.
Requests for production: A formal request for documents, emails, or other records relevant to the case.
Requests for admission: A request asking the other party to admit certain facts to simplify the case.
The discovery process can be time-consuming, but it’s essential for preparing the case for trial. At Confidant Consult, PLLC, we assist in collecting evidence, questioning witnesses, and developing our strategy based on what we uncover.
Pre-Trial Motions
Before heading to trial, both parties may file pre-trial motions to ask the court to make rulings on specific legal matters. These motions could involve asking the judge to dismiss certain claims or allow certain evidence into the case.
Common pre-trial motions include:
Motion to dismiss: A request to dismiss the case due to lack of legal basis.
Motion for summary judgment: A request to have the case decided in one party’s favor based on the evidence without needing a full trial.
Motion to compel: A request to force the opposing party to provide requested evidence.
Pre-trial motions can help clarify the issues in dispute and streamline the process if some matters can be resolved without a trial.
Trial
If the case isn't resolved through pre-trial motions or settlement, the case will go to trial. The trial is where both parties present their evidence, examine witnesses, and argue their positions before the judge (or jury). In Michigan, business disputes may be tried by a judge or jury, depending on the specifics of the case.
Trial steps typically include:
Opening statements: Both sides give an overview of their case and what they plan to prove.
Presentation of evidence: Each side presents evidence through documents, witnesses, and expert testimony.
Witness examination: Each side has the opportunity to question witnesses through direct and cross-examination.
Closing arguments: Each side makes a final argument to persuade the judge or jury of their position.
The judge or jury will then deliberate and render a verdict. If the case is decided by a judge, the judge will issue a ruling. If the case is decided by a jury, they will deliberate and provide a verdict.
Post-Trial Motions and Appeal
After the trial, the losing party may file post-trial motions or an appeal if they believe the trial process was flawed or the judgment was unfair.
Post-trial options include:
Motion for a new trial: A request to retry the case based on errors in the trial process.
Motion for judgment notwithstanding the verdict: A request to override the jury’s verdict in favor of the requesting party.
If the case is appealed, the appellate court will review the trial court’s decisions and may uphold, reverse, or modify the ruling.
Settlement and Alternative Dispute Resolution (ADR)
Although litigation can lead to a trial, many business disputes are resolved through settlement or alternative dispute resolution (ADR). Mediation and arbitration are two common ADR methods.
Here's how settlement or ADR works:
Mediation: A neutral third party helps both sides discuss and negotiate a resolution.
Arbitration: A neutral third party acts like a judge and makes a binding decision.
Both settlement and ADR processes are often quicker and less costly than a full trial.
Contact Us Today
At Confidant Consult, PLLC, we know that business disputes are stressful and time-consuming. If you’re facing litigation, it’s crucial to have a knowledgeable legal partner by your side who can help guide you through the process.
Reach out to us today to schedule a consultation with our skilled attorneys. We serve the entire state of Michigan. Let us help you find a solution to your business dispute.
