I want to sue another business.

The cause of suing another business is typically due to a dispute regarding:

A contract or commercial agreement
Intellectual property
Recovering debt
Property or building issues

When a civil right or obligation is breached, a civil wrong is committed. The wronged party can seek redress by suing the party who committed the wrongful act.

Often it is difficult for people who are caught up in such disputes to fully comprehend the legal rules and procedures which come into play when suing or being sued.

Below is some helpful advice on what to look for and what to do when suing.

Attempt to resolve the dispute before suing by communication.

The first step in any dispute is to communicate and try to resolve it without bringing in a third party.
If matters do not resolve by communication, it is ideal that at least the issues in dispute may have been narrowed.

Consider legal advice and prepare yourself for questions

If you decide on taking the step to sue another business, you should get legal advice beforehand. A lawyer can advise you on the specific circumstances of your dispute and put your case forward on the best possible basis.

Your lawyer will want you to consider the following:

What is your cause of action? Is it negligence, a breach of contract or a breach of trust?
Is your claim within the prescribed time limit?
What relief is available to you?
Which jurisdiction you should bring your claim in?
Do you have the evidence to support your case?
What are the strengths and weaknesses of your claim and the prospects of winning?
Does the defendant have the means to provide the relief you are seeking?
How long could the litigation take to complete?
How much will the litigation cost?
And last, but not least, is your claim commercial and worthwhile pursuing?

How long will it take?

The length of litigation is primarily dependant on the response you receive from the Defendant.

Once a claim is issued a Defendant has a specific time period to lodge a defence. If this is not done, then a Plaintiff has the ability to request an order from the court for the relief that they are seeking from the Defendant. As such, if a matter is unopposed an order can be obtained in a relatively short period of time.

What if a claim is defended?

If a claim is defended a claim could go through the full extent of the court procedure.

This can involve a defence and possible counterclaim, formal responses to any allegations made in the court pleadings, plus a period of time for any documents which the parties seek to rely upon to be exchanged.

A court-appointed date will be given to attempt to mediate and resolve the dispute and if a resolution cannot be achieved, a date for a contested hearing will be set.

The full extent of this procedure can take many months and, in more complex matters, years.

How much will it cost?

The cost of litigation is dependent on the complexity of the claim and also on the response of the Defendant.

The further a litigation progresses before resolving then the more it will cost. The costs which you incur normally fall under two categories, legal costs and disbursements.

Legal costs are usually determined by an hourly charge out rate which differs between who works on your matter.
Disbursements are any out of pocket costs which are incurred on your behalf such as filing fees, barrister and expert fees, travel expenses, and the like.

Litigants should ensure they are well informed about their estimated legal costs before and during a matter.

Usually, when a matter is decided by a court, the court will order the losing party to pay the winning party’s legal costs.

Be aware that these awarded costs are based on a court scale and will not be the same as what you are obliged to pay your lawyer. As such, it is usual that there will be some out of pocket element to legal costs even if you win your matter.

In the worst case scenario, you may lose your case and a costs order could be made against you.