What Are the Common Business Litigation Cases in Florida?

Business litigation is an unfortunate necessity in Florida’s corporate landscape, and these cases not only disrupt operations but also lead to costly disputes. To protect yourself, you need to know what to look for in order to protect your company. So, what are the common business litigation cases in Florida?

Before we look at some of the most common elements that lead to litigation, it’s important to first understand the scope of Florida’s business landscape. There are over 3.1 million small businesses operating in the state, and the state added 163,000 new businesses in 2024 alone. Because of this, Florida is ranked number 1 in terms of economy.

With a landscape shaped by many different factors, including state-specific laws, the presence of numerous industries, and a booming real estate market, cases that lead to business litigation can vary wildly. Whether you are a small entrepreneur or a large corporation, understanding the most common types of business litigation cases in the state is important when working to protect your assets and ensure that your company thrives in a competitive marketplace.

Breach of Contract

A breach of contract is one of the most common types of business litigation cases in Florida. Whether it’s a supplier failing to deliver products on time, a vendor not fulfilling their obligations, or a business partner not living up to their end of a deal, these cases can be costly and damaging to both your bottom line and your reputation.

For businesses in Florida, it’s essential to make sure all your contracts are clear and that you have solid, legally binding agreements in place to avoid any misunderstandings. If a dispute crops up, courts typically examine the terms of the contract, the nature of the breach, and any damages that resulted from it.

Business Partnership Disputes

Florida is home to many small businesses that rely on partnerships. However, like any relationship, business partnerships can face their share of challenges. In the state of Florida, partnership disputes often lead to court cases involving the Florida Revised Uniform Partnership Act, which governs the rights and responsibilities of partners in both general and limited partnerships.

Disputes can revolve around various issues, like a breach of fiduciary duty, unfair distribution of assets, or disagreements about the direction of the business.

Shareholder Disputes

Corporations in Florida experience disputes among shareholders, especially when there are disagreements over corporate governance or business decisions. These cases can involve issues like shareholder derivative actions, breach of fiduciary duty, or even shareholder oppression.

Luckily, the Florida Business Corporation Act provides a legal framework for resolving corporate governance disputes, so shareholders who believe their rights have been violated can seek legal remedies through business litigation.

FAQs

Q: What Happens if a Business Partner Secretly Takes Company Funds for Personal Use?

A: If a business partner secretly takes company funds for personal use, this could be considered either embezzlement or breach of fiduciary duty under Florida law. The affected business can file a civil claim seeking damages, restitution, or even removal of the partner from the business. In some cases, criminal charges could apply. Courts assess the financial loss and determine remedies based on contract agreements and state corporate laws.

Q: Can a Business File a Claim Against Another Business for Poaching Employees?

A: Yes. If there was a non-solicitation agreement in place, the business may have a claim for unfair competition or contract violation. Florida courts recognize these kinds of agreements if they’re reasonable in scope and duration. However, without an agreement, these claims are harder to win. Cases involving trade secret theft or intentional interference with contracts may still be litigated.

Q: If a Competitor Copies My Business’s Branding, Do I Have a Case?

A: If a competitor copies your business’s branding, you could possibly have a case. Florida law provides protection under trademark infringement and unfair competition statutes. If the competitor’s branding is likely to confuse customers and mislead them into thinking they’re associated with your business, you may have grounds for a claim. Trademark registration strengthens your case, but it’s not necessary.

Q: What Happens if a Business Refuses to Pay for Services It Has Already Received?

A: If a business refuses to pay for services it already received, the service provider may file a claim for breach of contract, unjust enrichment, or even fraud if deceit is involved. Florida law allows the unpaid party to recover damages, including the cost of services, late fees, and legal expenses. In some cases, a lien can even be placed on the debtor’s assets.

LMK Legal for Your Business Litigation Needs

Whether you’re facing a breach of contract, a real estate dispute, or an intellectual property case, seeking the guidance of an experienced legal professional is essential. At LMK Legal, we’re here to help Florida business owners manage the risks of litigation so you can focus on what matters most: growing your business.

Contact us today to schedule a consultation.