What types of business disputes require a lawyer?

While small contract disputes may be handled in small claims court, complex matters typically need legal help: partnership or shareholder disputes, breach of contract over $25,000, intellectual property issues, employment claims, vendor or supplier disputes, non-compete agreements, and business fraud.

Can I sue a business in small claims court in California?

Yes, small claims court handles disputes up to $12,500 for individuals and $6,250 for businesses (as plaintiff). No lawyers are allowed. For claims above these limits, you'd need to file in civil court where legal representation becomes more important.

How much does a business litigation attorney cost in California?

Business attorneys typically charge $250-$600+ per hour depending on experience and location. Some offer flat fees for specific services. For litigation, costs can range from $10,000 for simple cases to $100,000+ for complex trials. Many disputes settle through negotiation for less.

Should I try to resolve a business dispute without a lawyer first?

Often yes - direct negotiation or mediation can resolve many disputes faster and cheaper than litigation. However, consult a lawyer before signing any settlement to ensure it protects your interests. For ongoing business relationships, preserving the relationship through negotiation is often preferred.

Do I Need a Lawyer for Business Disputes?

Answer a few questions to get personalized guidance for your California business dispute

What type of business dispute are you facing?

Different disputes have different complexity levels

Contract dispute (customer, vendor, or service agreement)

Partnership or shareholder dispute

Employment matter (wrongful termination, wage claim)

Intellectual property (trademark, trade secrets, copyright)

How much money is at stake?

Dispute value affects which court and whether attorney fees are justified

Under $6,250 (small claims as business)

$6,250 - $25,000

$25,000 - $100,000

Over $100,000 or significant non-monetary interests

Does the other party have a lawyer?

Facing a represented party without counsel puts you at disadvantage

No, they're also unrepresented

Not sure yet

Yes, they have an attorney

Yes, a large company with legal department

Is there a written contract involved?

Written contracts with clear terms are easier to enforce

Yes, clear written contract

Yes, but terms are ambiguous or disputed

Verbal agreement only

Informal emails or texts but no formal contract

Have you tried to resolve this directly?

Direct negotiation is often the fastest, cheapest solution

Yes, but negotiation failed

Some attempts but no real progress

Not yet - relationship is too damaged

The other party is ignoring me or won't respond

What's your goal for resolving this dispute?

Different goals may require different approaches

Get paid what I'm owed (straightforward collection)

Negotiate a settlement and move on

Force specific performance or injunction

Full litigation to establish precedent or get maximum recovery

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You Should Hire a Business Attorney

Your dispute has complexity that strongly benefits from professional legal representation.

Why legal help is important:

High-stakes disputes require strategic legal planning
Partnership/shareholder disputes are particularly complex
The other side having a lawyer puts you at disadvantage
Business litigation has strict procedural requirements
Proper legal strategy can save money in the long run
Attorneys may recover their fees if contract provides

Book $125 Consultation Find a Business Attorney CA Bar Lawyer Referral

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Consider Legal Consultation or Mediation

Your dispute is moderate. A consultation can help you understand options, or mediation may resolve it faster than litigation.

Options to consider:

Brief attorney consultation to assess your case
Business mediation for faster, cheaper resolution
Limited scope representation (attorney helps with specific tasks)
Have attorney draft demand letter, then negotiate yourself
Consider small claims court if amount qualifies

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You May Be Able to Handle This Yourself

For straightforward disputes under small claims limits with clear contracts, self-representation is often practical.

DIY steps for business disputes:

Send a formal demand letter first
Document all communication and evidence
Consider small claims court (up to $6,250 for businesses)
Try mediation before litigation
Know your contract terms thoroughly
If they get a lawyer, consider getting one too

Create Demand Letter Small Claims Guide

Understanding Business Disputes in California

Business disputes range from simple collection matters to complex partnership breakups. California's court system offers multiple paths to resolution, including small claims court, civil court, and alternative dispute resolution.

Common Types of Business Disputes

Dispute Type	Common Issues	Typical Resolution
Contract Breach	Non-payment, non-performance, warranty claims	Negotiation, demand letter, lawsuit
Partnership Disputes	Profit sharing, management disagreements, exit terms	Mediation, buyout, dissolution
Employment Claims	Wrongful termination, wage claims, discrimination	Agency complaint, settlement, litigation
Vendor/Supplier	Defective goods, late delivery, non-payment	Negotiation, replacement, refund
Intellectual Property	Trade secret theft, trademark infringement	Cease & desist, injunction, damages

California Court Options

Court	Claim Amount	Lawyers	Best For
Small Claims	Up to $6,250 (business) / $12,500 (individual)	Not allowed	Simple collection, clear contracts
Limited Civil	$6,250 - $25,000	Allowed	Moderate claims, faster process
Unlimited Civil	Over $25,000	Typically needed	Complex disputes, large amounts

DIY vs. Hiring a Lawyer

Handle Yourself	Hire an Attorney
Claim under $6,250	High-value disputes
Clear written contract	Complex or ambiguous terms
Other party unrepresented	Other party has lawyer
Simple collection matter	Partnership/shareholder dispute
Goal is quick settlement	Need injunction or specific performance

Alternative Dispute Resolution

Negotiation: Direct discussion to reach agreement (always try first)
Mediation: Neutral third party helps find compromise (non-binding)
Arbitration: Private judge makes binding decision (often required in contracts)
Early neutral evaluation: Expert assesses case to encourage settlement

Before You Sue

Gather documents: Contracts, invoices, emails, receipts
Calculate damages: Know exactly what you're owed
Send demand letter: Often resolves dispute without court
Check contract: Look for arbitration clause, attorney fee provision
Consider costs: Will legal fees exceed potential recovery?
Assess collectability: Can they actually pay if you win?

Attorney Fee Provisions

In California, each side typically pays their own attorney fees UNLESS:

Contract has an attorney fee provision (winner recovers fees)
Statute provides for fee recovery (some consumer/employment laws)
Court finds bad faith litigation conduct

Review your contract - a fee provision could help or hurt you.

Resources

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