and Peace of Mind
As with any relationship, issues can arise in business relationships that lead to disagreements. Unlike many other quarrels, though, disputes arising out of a business contract can cause people and businesses to suffer substantial harm to their reputation, business prospects and financial health. It is critical, therefore, for anyone dealing with a dispute related to a business transaction to speak to a lawyer about their options. Patrick McGlashan and Tom Luz of McGlashan Law, P.C. are dedicated New York business litigation attorneys who are adept at navigating the complexities of lawsuits that arise out of business dealings, and if you hire the firm, they will work tirelessly to help you seek to protect your interests. Mr. McGlashan’s office is located in Manhattan, and he regularly assists people with their litigation needs in Manhattan and other cities throughout New York.
Typically, business relationships are based on contracts to purchase property, perform services, or provide goods. Unfortunately, parties that enter into contracts do not always uphold the duties imposed by the agreements. When one party neglects to fulfill the terms of an agreement, it frequently causes the other party to the agreement significant harm. For example, if a customer refuses to pay a vendor on time or a business neglects to deliver a product, it can cause economic losses.
Disagreements can also arise over the interpretation of the terms of a contract in cases where contractual provisions are vague, or the agreement fails to establish key duties. In some instances, one party will rely on another’s expertise and guidance when making important business decisions. For example, a business or individual may make decisions based on advice provided by an insurance agent or financial advisor. If the advice offered is inaccurate or misleading, it can cause financial harm, which often leads to claims for damages.
As disagreements between business associates often stem from disputes over contracts, many lawsuits asking the courts to resolve such disputes will assert breach of contract claims. In New York law, a plaintiff who claims that a defendant breached a contract must first establish that a contract existed between the parties. Second, they must prove that they performed their duties under the contract, but the defendant failed to comply with one or more of the agreement’s material terms, thereby breaching the contract. Finally, the plaintiff has to demonstrate that they sustained damages due to the defendant’s breach. A plaintiff who adequately shows a defendant breached a contract may be granted compensatory damages; if the defendant’s breach was egregious, the plaintiff might also be granted punitive damages.
Business dealings gone awry often lead to breach of fiduciary duty claims as well. Broadly, a fiduciary is a person that owes a duty to someone else to act with good faith, loyalty, and fair dealing. Corporate officers and directors, trustees, and agents are examples of fiduciaries.
If a fiduciary engages in deceitful or misleading behavior, it can lead to a breach of fiduciary duty claim. Generally, such claims arise when the fiduciary neglects to fully disclose critical facts to the person relying on the information provided by the fiduciary, engages in self-dealing, or fails to act with reasonable care. Parties asserting breach of fiduciary duty claims must show they suffered actual damages due to the breach to recover compensation.
Depending on the circumstances in which business disputes occur, a plaintiff may be able to assert other claims as well. For example, if the defendant intentionally or carelessly misled the plaintiff, it might give rise to a negligent or intentional misrepresentation claim. In some instances, a plaintiff might have grounds for asserting a fraud claim against the defendant.
Business transactions are often complicated, and when disagreements arise between business associates, it can have significant financial consequences. If you need assistance pursuing claims because of a contractual dispute or other disagreement related to your business, you should speak to an attorney as soon as possible. Patrick McGlashan, the founder and managing attorney of McGlashan Law Firm, P.C., is a seasoned business litigation attorney, and if you engage his services, he can advise you of your rights and formulate compelling arguments in your favor to help you seek a just outcome. Our office is located in Manhattan, and we regularly represent people in business litigation matters in Manhattan and other cities throughout New York. You can reach us to set up a confidential meeting by using our online form or calling us at (212) 203-8738.