Texas Business Law Attorney

Business Litigation Center - Frequently Asked Questions

Q: What does litigation of business disputes involve?

A: Litigation means filing a civil lawsuit to resolve a dispute. The process includes finding an attorney, filing a suit, conducting discovery, arguing pretrial motions, presenting the case at trial, and sometimes appealing the judgment. At any point throughout the litigation process, the parties may negotiate to settle the case.

Q: How can a business dispute be resolved without traditional litigation?

A: Alternative dispute resolution (ADR) is the name for various means of settling disputes, including arbitration and mediation, without undergoing traditional litigation. ADR is a popular way to resolve business disputes because it is usually less costly and quicker than traditional litigation.

Q: What is the difference between arbitration and mediation?

A: Arbitration is similar to a trial in that the parties present their respective arguments to a neutral arbitrator who makes a decision, presumably predicting how a court would decide. Mediation consists of an unbiased, trained mediator hearing the parties' arguments and attempting to offer a mutually acceptable compromise. Mediators often succeed by facilitating calm, reasoned discussion between the parties and offering them an unbiased view of the merits of each side's case.

Q: Are decisions by mediators or arbitrators binding on the parties?

A: The results of arbitration are usually binding only because the parties usually sign a contract before beginning arbitration in which they agree to be bound by the decision. However, the parties can forego such an agreement, in which case the arbitration would be nonbinding. Mediation, on the other hand, is typically nonbinding. The result is more like a suggestion for a reasonable compromise, but if the parties are not satisfied they may continue to litigate in court.

Q: How are arbitration and mediation decisions appealed?

A: Mediation decisions are really not appealed at all because they are merely nonbinding suggestions. Binding arbitration decisions are appealed in whatever manner the parties agree beforehand to allow appeals. Most commonly, the parties do not agree to allow appeals at all, making the initial arbitration decision final.

Q: What are "class actions?"

A: In a class action, a large group of similarly situated plaintiffs sues with one or a few plaintiffs serving as representatives of the group. By consolidating many cases into one, the judicial process is more efficient and plaintiffs can bring suits that individually would be impractical.

Q: Can businesses be plaintiffs in class actions?

A: Yes, they can. Just as a business individually can sue a person or another business, many similarly situated businesses or people can form a class to file a class action.

Q: How do lawyers charge legal fees for litigating class actions?

A: Most often, lawyers representing plaintiffs in class actions charge a contingency fee. In a contingency fee arrangement, a lawyer agrees that he or she will only be paid if the plaintiffs collect money, and the lawyer takes an agreed percentage of the amount collected. This arrangement is beneficial for the clients because they do not incur risks in paying litigation costs and there is a great incentive for the lawyer to win the case.

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Centrally located in the Arboretum area of north Austin, the Slater & Kennon law firm represents clients in Travis County, Bastrop County, Burnet County, Williamson County, and Hays County, including the cities of Austin, San Marcos, Bastrop, Burnet, and Georgetown.