Business litigation refers to a legal case in which a party brings a claim alleging that another party caused them business harm. A counterclaim alleging that the charged party was caused harm by the charging party can also occur. At the case’s close, the judge or jury will determine if the charging party has indeed been wronged and will award a remedy that will either be in legal or equitable form.
Damages and Relief
A legal remedy or relief involves money damages. It’s usually awarded when a business brings a civil action for legal relief on a claim that they’ve been illegally wronged in a way that can be rectified by an award of money damages. For example, if your business suffered X amount because another business breached your mutual contract and the court awards you X dollars in damages, that award is a legal remedy. That monetary award represents relief for compensatory damages, because you are being compensated for what you lost. If the wrongdoing involves fraud, courts will sometimes also award punitive damages, to deter the harming party from defrauding in the future.
Equitable relief is a bit different. Equitable relief refers to the court’s ability to provide relief that is not monetary. Such relief often includes issuing a restraining order to stop the offending party from continuing to engage in the illegal action that is harming the charging party.
The Nitty Gritty of Damages in Business Litigation
Because punitive damages are not allowed in breach of contract cases, the guts of such a case hinges on lost profits, or the amount of revenue lost minus the expenses needed to generate that revenue in the first place. For example, if X has a yearlong contract with Y for doing Z but in the middle of that year X employs YY to do Z for less money, then Y has a contract dispute with X. The lost-profit damages will be calculated by taking the amount that X paid each month for Z and subtracting the expenses that Y incurred in providing Z and multiplying that sum by 6 (for the 6 months remaining in the contract). This is a highly-simplified overview – contracts are notoriously nuanced and complex. Every contract dispute plays out in its own unique way.
Obtaining money damages can be exceedingly complicated; retain an experienced business law attorney to fight for your business rights.
If You’ve Suffered Business Harm, Call 732 238-8686 for More Information Today
If your business has been damaged by another party, Bowne Barry & Barry Attorneys at Law can help you obtain relief and your rightful money damages. Our business law attorneys have the experience and skill to help your New Jersey business. For business-law guidance, please contact or call the law office of Bowne Barry & Barry at 732 238-8686 today.