Business disputes can threaten the very survival of your company. When partners betray agreements, suppliers fail to deliver, customers refuse payment, or competitors engage in tortious conduct, you need attorneys who understand both the legal complexities and business realities at stake. The Los Angeles business litigation lawyers at Tauler Smith LLP represent businesses of all sizes in high-stakes disputes. We combine sophisticated legal strategies with practical business sense to protect our clients' commercial interests and help them recover from those who have wronged them.
When Business Relationships Turn Hostile
Business relationships built on trust and mutual benefit can deteriorate quickly when money is at stake. The supplier who has reliably delivered for years suddenly ships defective products that ruin your reputation with customers. The distribution partner who helped build your market presence diverts opportunities to their new venture. The customer whose business you've supported through challenges refuses to pay hundreds of thousands in invoices, claiming manufactured disputes. These betrayals don't just cause immediate financial losses—they can destroy businesses built over decades.
Partnership and shareholder disputes are among the most bitter business conflicts. Partners who once shared visions for success become adversaries fighting over control, money, and business direction. Majority shareholders may freeze out minorities through squeeze-out tactics, refusing distributions while paying themselves excessive salaries. Minority shareholders might hold companies hostage with unreasonable demands or litigation threats. Business divorces often become more acrimonious than marital ones, with partners using intimate knowledge of each other's vulnerabilities to inflict maximum damage.
Business torts go beyond simple breach of contract to include deliberate interference with your commercial relationships and opportunities. Competitors who spread lies about your business to steal customers commit trade libel. Former employees who violate non-compete agreements and steal your clients engage in unfair competition. Companies that induce your suppliers or customers to breach their contracts with you commit tortious interference. These intentional wrongs justify not just compensatory damages but potentially punitive damages that can dwarf actual losses.
Breach of Contract in Commercial Transactions
Complex business contracts govern billions in transactions, and breaches can cascade through supply chains causing exponential damages. When manufacturers fail to deliver components on time, assembly lines shut down, customer orders go unfilled, and carefully orchestrated just-in-time operations collapse. Exclusive dealing agreements are violated when parties secretly sell to competitors, undermining market strategies and pricing structures. License agreements are breached when licensees exceed scope, fail to pay royalties, or violate quality standards that damage brand value.
The Uniform Commercial Code provides special rules for sales of goods that differ from common law contract principles. Battle of the forms issues arise when purchase orders and invoices contain conflicting terms. Warranty obligations extend beyond express promises to implied warranties of merchantability and fitness for particular purposes. Cover damages and consequential damages may far exceed purchase prices when breaches disrupt business operations. We understand these specialized rules and how to leverage them for maximum recovery.
Construction and real estate disputes involve enormous sums and complex multi-party relationships. Developers who abandon projects leave investors with unusable partially-completed buildings. Contractors who use substandard materials or deviate from specifications create latent defects that manifest years later. Commercial lease disputes arise when landlords fail to maintain properties, interfere with tenants' businesses, or attempt to evict tenants to capture rising rents. These cases often require extensive expert testimony on construction standards, property valuation, and business damages.
Fraud and Misrepresentation in Business Deals
Business fraud goes beyond breach of contract, involving deliberate deception that California law punishes severely. Sellers who conceal known problems while negotiating asset purchases commit fraud that can unwind transactions or trigger massive damage awards. Financial statement fraud induces investments or loans based on false information about business performance. Ponzi schemes and pyramid schemes masquerade as legitimate businesses while stealing from investors. These fraudulent schemes don't just cause compensatory damages—they support punitive damages that can be multiples of actual losses.
Joint venture and partnership fraud occurs when partners conceal conflicts of interest, divert opportunities, or misrepresent contributions. You may have entered partnerships based on partners' claimed expertise, capital, or connections, only to discover these were lies designed to access your resources. Partners might be secretly competing, using joint venture resources for personal benefit, or setting up the venture to fail while positioning themselves to acquire assets cheaply.
Securities fraud affects both public and private company investors. Private placement memoranda may contain false projections, omit material risks, or misrepresent use of proceeds. Majority shareholders might manipulate company transactions to dilute minorities or transfer value to themselves. Even sophisticated investors fall victim to complex fraud schemes involving multiple entities, offshore structures, and fabricated documentation. Federal and state securities laws provide powerful remedies including rescission, damages, and attorney's fees.
Recovering Full Compensation for Business Losses
Business litigation remedies extend beyond simple out-of-pocket losses to include lost profits, consequential damages, and restitution. Lost profits must be proven with reasonable certainty, but courts recognize that new businesses and lost opportunities require flexibility in proof. We work with forensic accountants and industry experts to quantify damages, including lost business value, mitigation costs, and financing expenses caused by breaches.
Injunctive relief can be more valuable than money damages in commercial disputes. Preliminary injunctions can prevent partners from competing, maintain status quo in corporate control disputes, or stop ongoing breaches that threaten business existence. Specific performance can compel delivery of unique goods, transfer of business assets, or completion of transactions. Receiverships place independent fiduciaries in control of businesses or assets when owners are deadlocked or engaging in waste.
Alternative dispute resolution through arbitration or mediation is common in commercial disputes, whether through contractual requirements or strategic choice. Arbitration can provide faster resolution with industry experts as decision-makers, though it limits appeal rights and discovery. Mediation allows business solutions not available through litigation, preserving relationships where possible. We help clients evaluate when ADR serves their interests versus when aggressive litigation is necessary.
Strategic Business Litigation
Business litigation strategy must align with business objectives, not just legal theories. Sometimes swift settlement preserves business relationships and cash flow even if fuller recovery might be possible through trial. Other times, aggressive litigation is necessary to establish precedents, deter future breaches, or demonstrate that your company won't be pushed around. We help clients evaluate litigation in business terms—cost-benefit analysis, cash flow impact, opportunity costs, and effect on business relationships.
Leverage often determines outcomes in commercial disputes. Pre-judgment attachments and receiverships can pressure settlements by restricting defendants' operations. Discovery into embarrassing or competitively sensitive matters creates settlement incentives. Counterclaims transform defendants from judgment-proof into parties with something to lose. Understanding what matters to opponents—reputation, other business relationships, regulatory concerns—allows strategic pressure that motivates favorable resolutions.
Contact the Los Angeles Business Litigation Attorneys at Tauler Smith LLP
Based in Downtown Los Angeles, we represent businesses throughout California in complex commercial disputes. Our attorneys understand that business litigation affects not just legal rights but business operations, relationships, and futures. Whether pursuing claims against those who have wronged your business or defending against attacks from competitors, we provide sophisticated representation aligned with your business objectives.
Call 310-590-3927 or complete our online form to discuss your business dispute with experienced attorneys who speak the language of business.