Texas Personal Injury Law Firm – Buzbee Law Firm – Just Win


Can My Business Dispute Be Settled Outside of Court?

In the corporate world, disagreements can be necessary evils, but they can also often be settled by discussion and negotiation outside of court. In many situations, it is in both parties’ best financial interest to settle disputes outside of the courtroom rather than paying the legal fees involved in a lengthy trial. 

We suggest consulting an attorney if you are involved in a business dispute. Texas company owners resort to commercial litigation to find an amicable resolution under their legal rights. Discussing your case with a Texas commercial litigation attorney before beginning negotiations can save you from future legal troubles.

Alternative Dispute Resolution in Business Dispute Cases

The term “alternative dispute resolution” (ADR) encompasses the many methods available for settling legal disagreements outside of court. Mediation, arbitration, and neutral assessment are all examples of alternative dispute resolution methods. These procedures are private, informal, and stress-free alternatives to going to court.

Types of Alternative Dispute Resolution in Texas

Mediation and arbitration are the most common forms of ADR used today. Here’s a review of resolution types that can help resolve business disputes outside of court:


The mediator’s job is to ease communication between the parties involved so that they may reach a mutual agreement. The mediator doesn’t take sides but helps identify and articulate their interests in the dispute.

Everyone benefits when parties can express their concerns and talk them through during mediation. Mediators work with disputing parties together and sometimes individually to attempt to reach a lasting, mutually agreeable, and legally nonbinding settlement.


A neutral third party, acting as a judge, decides the case’s outcome. The arbitrator hears arguments from both sides and considers any supporting evidence before making a final, legally enforceable ruling. 

Whether or not attorneys will be present at the arbitration hearing and the accepted levels of proof are just two of the many factors that may be discussed and agreed upon by the parties. Arbitrators’ rulings are private and normally cannot be challenged in court.

Why Rely On ADR to Resolve Disputes?

The court system isn’t the only option for resolving a conflict. Using alternative dispute resolution (ADR) in Texas can help you save both time and effort. Here are some of the benefits:

  • Compared to the trial length, which can last a year or more, the time it takes to negotiate and formalize an out-of-court settlement through ADR is much shorter.
  • It saves you money by avoiding the costs of going to court, hiring an expert witness, and other similar charges. 
  • You save time since you won’t waste time waiting for a court date and won’t have to take time off from work.
  • Alternative dispute resolution (ADR) allows for more active participation in creating a feasible solution than going to court and leaving the choice up to a judge or jury. 

Business Disputes Covered in a Commercial Litigation Case

For company owners unfamiliar with the process, “commercial litigation” might be misleading. In layman’s terms, it’s a legal phrase describing problems in the business world that may call for the intervention of lawyers. The typical business lawsuit case in Texas revolves around the individuals and organizations at the core of the conflict. 

No matter how little, every disagreement in the company can potentially escalate into costly and time-consuming litigation. Contact a commercial litigation attorney in Texas to review your case. We will examine the matter meticulously to identify if your business dispute can be settled out of court. 

Some business conflicts we can handle for you in case it leads to a lawsuit:

  • Breach of a contract or commercial deal
  • Breaking up a commercial connection
  • Agreements for business partnerships and joint ventures
  • Making and breaking financial commitments
  • Agreements on confidentiality
  • Fraud detection and prosecution
  • Concerns about intellectual property
  • Property issues and conflicts in real estate
  • Concerns about employment and personnel
  • Breach of fiduciary obligation
  • Construction sites and labor concerns

Statute of Limitations for Business Dispute in Texas

The statute of limitations governs the time frame in which a claim must be filed in court. The clock starts ticking on the first day after the event date. Statute limitations are put in place to prevent lawsuits from being brought along decades after the events. 

Depending on the nature of the claim, Texas’ civil statute limitations might range from one to five years. In Texas, the period during which a claim for breach of contract may be filed is limited to four years from the date of the breach. You may lose the right to sue and have your claims rejected if you wait longer than four years to bring the action.

Exceptions to the Texas Statutes of Limitations for Breach of Contract

You will likely lose your case if you have a claim for breach of contract and don’t submit it in court before the statute of limitations expires. The statute of limitations for breach of contract, however, has two major exceptions:

Fraudulent Concealment

It is when the defendant disguised the breach of contract in such a way that you had no means of knowing it happened. Until you are aware of the violation or are given a reasonable amount of time to discover the breach, the statute of limitations doesn’t begin.

Discovery Rule

The discovery rule is quite similar to the fraudulent concealment rule in that it applies when you are unaware that the breach has occurred or you have been harmed. According to this principle, the clock doesn’t start ticking on a breach of contract claim until the injured party learns of the violation or the harm it caused.

Settle a Business Dispute Outside of Court

Many people are surprised to learn that business litigation issues may be handled peacefully outside of court, especially when lawyers are involved. Legal representation, if anything, expedites dispute resolution by increasing the likelihood of a favorable out-of-court settlement.

Your business litigation attorney in Texas will reach out to the other party and facilitate an amicable conclusion. Disputes in the corporate world are settled by dialogue, mediation, and equitable offers. Our attorneys at the Buzbee Law Firm will assist you in every legal matter. Contact us today to discuss this further.