COMMERCIAL LITIGATION

COMMERCIAL LITIGATION

The primary goals of business men are to increase profitability, to provide excellent customer service and to stay ahead of the competition. Business do not want their goals interrupted by having to engage in commercial litigation especially because it is time-consuming, a detraction from company goals and potentially expensive. But situations do arise where commercial litigation is inevitable and because the stakes are so high, companies should be very careful in their selection of an attorney. The attorney selected should have vast experience, an educational background at the finest schools in America, and be of the highest character, honesty and integrity.

One inevitable case of commercial litigation being require was Brandaid Marketing v. Cyberian Holdings, Ltd. Because of my reputation and experience, the president of Brandaid was recommended to our law firm and he made an appointment for a consultation. He explained that BrandAid’s principal business operation was marketing “in-store” advertising through the use of supercards in displays mounted in supermarkets. A Hong Kong company, Cyberian Holdings, ltd, had attempted to steal Brandaid’s business, entered into a fraudulent contract with Brandaid and, as a result, Brandaid had lost $21,000,000. A decision was made to sue in the U.S. District Court for the Southern District of New York.

At trial, I proved that Brandaid had been defrauded but the federal district judge issued a very unusal decision finding that because both parties were guilty of misconduct, the lawsuit should be, and was dismissed. Brandaid’s president was very disappointed but I explain that the decision was legally wrong and that an appeal had to be taken. He never lost faith in me or our law firm and an appeal was taken to the US Court of Appeals for the Second Circuit in Manhattan. The appeals court reversed the federal district court and ordered a new trial. At the second trial, I again proved that Brandaid had been defrauded and a $21,000,000 judgmemt was awarded.

Especially in these Covid-19 days, there are many legal challenges confronting businesses. Knowing your rights and the best course of action to take requires interaction with an experienced and reputable commercial litigation attorney.

The Writer：

Paul Siegert has been an attorney in good standing for 46 years, have taught continuing legal education courses to other attorneys on how to try lawsuits in New York, and have graduated from the Riverdale Country Day School, Wesleyan University and the New York University School of Law.

FAQS

1. Attorney Fees: Does the Losing Side Have to Pay?

In the United States, the rule (called the American Rule) is that each party pays only their own attorneys’ fees, regardless of whether they win or lose.

Whether an exception to the “American Rule” will apply will depend on the type of case you’re involved with and the state in which you live. For instance, you might have to pay when:

(1). a contract provision calls for the payment of attorneys’ fees, or

(2). a statute (law) specifically requires payment of attorneys’ fees by the losing side. For instance, in a Fraud case, the losing party is typically required to pay the legal fees of the winning party.

2. How long does it take to litigate a case?

Potential clients usually ask our lawyers, “How long will it take to settle my case?” The best answer is that “it depends.” In most of the cases, parties come to lawyers because they cannot settle their disputes by themselves, so litigation is the only solution. However, 80% of cases will be resolved by settlement.  Either party may propose a settlement offer, that must be accepted by both parties. As a result, only a small percentage of cases ended up going to trial.