What To Expect During the Commercial Contract Litigation Process in Texas

If you are currently facing a legal dispute over a specific business agreement, you are probably wondering what to expect during the commercial contract litigation process in Texas. While the process might sound overwhelming to the average layperson, this knowledge gap can be filled quickly and comprehensively when you hire the right legal support to assist you.

Now more than ever, it’s important for business owners and other professionals in the market to understand how these cases unfold and know what to do if they become involved in one.

Step 1: File the Initial Complaint

The first step in any commercial contract dispute is to formally file the complaint. You will need to fill out a document that details the nature of the contract, why you believe it has been breached, and what type of relief you are seeking as part of this filing.

Once you have filed, the legal process will be initiated, and you will officially notify the opposing party of your claims. Be sure everything you submit is accurate, as this sets the foundation for the entire case moving forward.

Some key details to be aware of in this stage:

• You will need to identify the specific clause(s) of the contract that were allegedly breached.
• Provide supporting documentation, such as different emails, invoices, or signed agreements.
• Be prepared to clearly outline the exact damages you are seeking.

In 2023, Texas saw a 13% increase in the number of civil cases filed. This includes a 16% increase in commercial contract disputes. More businesses are turning to the litigation process to resolve their outstanding disagreements. With this uptick in mind, it’s important to file early with an attorney, as crowded dockets could delay your proceedings longer than you would prefer.

Step 2: Discovery, Motions, and Pretrial Preparation

After the complaint has been filed and you receive a response from the defendant, both parties will enter the discovery phase. This is an important step in building your case, where evidence is exchanged by all parties involved. The discovery phase may include depositions, interrogations, and input from expert witnesses.

During this phase, you can expect:

• Both sides will have an opportunity to request access to different records, emails, and other relevant documentation.
• Attorneys may file different motions to dismiss or a motion for summary judgment.
• Pretrial hearings will shape what types of evidence and arguments are allowed in court.

With district filings up 14%, this phase could stretch even longer than expected due to a heavy court caseload. This is why we recommend that businesses stay flexible and work closely with their legal counsel to stay on top of timelines and procedural requirements.

Step 3: Resolution

Not every commercial dispute that is submitted in Texas will make it to a formal trial. In fact, many times, these disputes are settled outside of the courtroom through either negotiation or mediation. What is attractive about the option to settle is that it avoids a lot of the traditional expenses and time commitment of a trial.

Some potential outcomes at this point in the process include:

• A negotiated settlement agreed upon by both parties
• Mediation facilitated by a neutral third party
• A trial, where a judge and jury decide the outcome of the case

If your case needs to proceed to a formal trial, you’ll need to be prepared to present compelling evidence in the form of formal arguments, witness testimony, and a detailed presentation of your proof. However, businesses are also encouraged to explore all other resolution options before committing to a trial. This is especially true if the case could be resolved through a practical compromise, and all parties involved are committed to acting reasonably and reaching a solution.

FAQs

Is Commercial Litigation Difficult?

Commercial litigation can be extremely challenging due to the introduction of complex business issues and high financial stakes. This becomes even more difficult to manage when there are multiple parties involved. These cases are known to require extensive documentation, expert testimonies, and a deep ability to understand contractual obligations. Hiring an attorney can make the process much more manageable and simplify the experience.

What Is the Difference Between Commercial Litigation and Securities Litigation?

The discipline of commercial litigation is a wide umbrella term that covers common business disputes like breaches of contract, partnership conflicts, and supplier disagreements. On the other hand, securities litigation is a specific type of litigation that focuses on issues related to investments. This can include fraud, misrepresentation, and regulatory violations involving stocks. While both involve corporate entities and money, the laws between them can differ.

How Long Does Commercial Litigation Usually Take?

There is no universal timeline for how long an individual’s commercial litigation process will take. There are many different factors at play, such as how complicated a case is, the number of parties involved, and how willing both sides are to reach a compromise. Some cases have settled within a few months, while more serious cases have stretched out to a year or more.

Do I Need a Lawyer for Commercial Litigation?

While you are not legally required in Texas to hire a lawyer for your commercial litigation case, it is recommended that you secure one. Most business owners do not have a legal background or first-hand experience in commercial litigation to manage their claims alone. If you try to do this, you could risk missing important deadlines or overlooking details that could inadvertently delay your case. All of this can be avoided with an investment in quality legal representation.

Contact Yocom Rine P.C. Today

If you are facing a business dispute in Texas and are wondering if you should take legal action over a contract issue, contact our firm today. We are here to help our clients through every step of the commercial litigation process. From an initial assessment to your final resolution, we are here to take on the bulk of the legal responsibilities so you can focus on running your business. Contact us today to learn more about how we can help.