What is the most common cause of business litigation?

Business litigation in Virginia can be a complicated process and unfortunately is something that many businesses will have to deal with at some point. The most common cause of business litigation is a breach of contract. This occurs when one party fails to fulfill their obligations as outlined in an agreed upon contract. In these cases, one party may sue or be sued by the other. Other common causes of business litigation in Virginia are disputes over employee wages and benefits, disputes between business owners, or disputes involving a shareholder or investor. Additionally, companies may take legal action in Virginia when there is a breach of intellectual property law or when one business sues another company for false advertising. Businesses can also become involved in litigation when there are disagreements about the terms of a lease or purchase agreement, when a consumer sues for a product defect, or when there are consumer fraud cases. In sum, the most commonly seen type of litigation involving businesses in Virginia is breach of contract, but other reasons such as disagreements over wages, employee benefits, purchase or lease agreements, false advertising, or a product defect can all be causes of business litigation.

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What is the most common cause of business litigation?

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