Most common lawsuits filed against business owners

On Behalf of | Dec 22, 2022 | Blog, Business Law

When you own a business in Pittsburgh, there is always the risk of lawsuits. Here’s a look at the most common lawsuits filed against business owners and what you can do to minimize your chances of being sued, from understanding your legal rights to knowing which areas to watch for in litigation.

Most common lawsuits

Here are four of the most common types of lawsuits seen in business law: personal injury, property damage, contract disputes, negligence, and false advertising.

Personal injury

Most personal injury lawsuits against business owners concern accidents at work or during leisure activities. Examples of such accidents include slips and falls, car crashes, and injuries sustained because of defective products.

Property damage

Businesses can also be sued for property damage if their operations cause significant damage to another person’s property. For example, if your factory causes extensive damage to surrounding properties, you may be liable for damages.

Contract disputes

If two businesses enter a contract, but one party fails to live up to their end of the deal, they may sue the other party for breach of contract. For example, if your company contracts with a landscaping service but does not pay them on time, they may sue you for damages. Therefore, it is essential to keep accurate records of all dealings with third parties so any disputes can be quickly resolved.

Negligence

Another typical lawsuit filed against business owners is for negligence. This lawsuit is filed when businesses fail to take appropriate precautions to protect themselves from harm. For example, suppose a bakery places unprotected racks of dough near an oven. In that case, a customer who drops something might sue the bakery for negligence.

False advertising

A final common lawsuit filed against business owners is for false advertising. This lawsuit is filed when a business lies about its products’ quality, safety, or price. For example, if a store says its products are handmade when they are not, customers might sue the store for false advertising.

Plan ahead

Owners should be prepared for lawsuits, even if they don’t think they will ever get sued. Many lawsuits are filed without warning, so it’s important to have a plan in case something bad happens.