What is the difference between corporate and business litigation?

Some Maryland business owners may not be aware that there is a distinction between business and corporate litigation. In order to understand the difference between corporate and business litigation, it is first necessary to have general definitions of corporate and business law. The information below is intended to give you an overview of the difference.

Corporate law encompasses the rules and regulations that apply to the legal entity, such as a corporation or a limited liability company, under which your business operates. This includes the creation of your legal entity, its function and, perhaps, its eventual termination. Any litigation under corporate law is often related to how the business interacts with shareholders and the actions of the governing body, such as the board of directors in the case of a corporation, of the business.

Business law, on the other hand, covers your company's external relationships, such as customers, vendors and other third parties. Any litigation under this area of law will most likely be regarding disputes surrounding the operations of the business. For instance, if a customer fails to make timely payments for the goods or services you provide, a business lawsuit could be filed attempting to obtain payment and other economic and non-economic damages.

Corporate and business litigation can be costly and time-consuming. Maryland law does allow other methods -- such as mediation and arbitration -- for resolving both internal and external company disputes. Engaging the advice and assistance of an attorney familiar with both corporate and business law may provide you and your company with the tools necessary to efficiently resolve disputes so you can get back to running your business.

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Daniel S. Willard, P.C.
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Bethesda, MD 20814

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