What Are the Types of Commercial Real Estate Litigation?

A wide range of legal conflicts involving commercial property are included in the category of commercial real estate litigation. These disputes can affect companies, investors, developers, and landlords, and they frequently entail large financial stakes. For the purpose of handling these intricate matters, it could be helpful to ask, “What are the different types of commercial real estate litigation?”

What Is Commercial Real Estate Litigation?

Commercial real estate litigation includes legal conflicts pertaining to the ownership, usage, and management of commercial properties. Different parties involved in commercial real estate, such as property owners, landlords, renters, developers, investors, contractors, and municipal authorities, may have these disagreements.

Zoning disputes and contract violations are only two examples of the many topics that could be covered by a claim. In order to handle potential legal difficulties and safeguard their interests, real estate market participants must have a thorough understanding of the breadth and nature of commercial real estate litigation.

Types of Commercial Real Estate Litigation

Commercial real estate litigation covers a range of areas. However, there are some key areas that are most common. These include:

• Breach of contract
• Landlord and tenant disputes
• Property disputes
• Zoning and land use disputes
• Construction disputes

Breach of Contract

Contract violations are among the most frequent causes of litigation in the commercial real estate sector. Real estate transactions are based on contracts, which define the parties’ responsibilities and rights. Litigation may result when one party breaks the terms of the contract. Purchase agreements may give rise to disputes if one of the parties fails to close the deal. Lease agreements may result in disputes between landlords and tenants regarding nonpayment of rent or failure to perform maintenance.

Construction contract disputes may be regarding delays in project completion or poor-quality work. These violations can result in monetary losses, including damages awarded to the non-breaching party and specific requirements requiring the party in violation to carry out their obligations.

Landlord And Tenant Disputes

Another common cause of litigation in commercial real estate is landlord-tenant relationships, which can involve different facets of lease agreements and property management. Evictions are a common problem, and renters may challenge a landlord’s attempt to evict them for failing to pay rent or violating the terms of the lease.

Tenants who are suspected of improper subleasing, misusing the property, or neglecting to maintain it may also be found in violation of their lease. Legal battles over disputes about rent hikes, calculations, and other costs are also common. Significant legal fees, damaged relationships, possible court-ordered evictions or lease terminations, and monetary recompense for damages or unpaid rent are all consequences of these disagreements.

Property Disputes

Another important area of litigation includes disputes over the ownership, borders, and usage of commercial properties. These disputes frequently involve several parties, such as municipalities, developers, and adjacent property owners. Boundary conflicts are a common issue, particularly in densely urban areas where arguments over property lines are contested, bringing legal challenges.

These conflicts may result in large financial losses, interfere with the use of the property, require court-ordered settlements such as boundary revisions or property surveys, and have long-term effects on the marketability and value of a property.

Zoning and Land Disputes

In commercial real estate, zoning, and land use issues are crucial and may involve the contesting of laws or government policies. Zoning changes are a common issue, where property owners challenge modifications that adversely affect the intended use or value of their property. Conflicts over permissions emerge when development or commercial operation permits are refused or revoked.

These disputes have the ability to affect future development and investment in the area, modify zoning or land use restrictions through court rulings, and delay and increase the cost of development projects.

Construction Disputes

Construction defect litigation addresses allegations of poor design or construction in commercial buildings and frequently involves a number of parties, including developers, architects, engineers, and contractors.

Common difficulties include mechanical breakdowns in HVAC, electrical, or plumbing systems; water infiltration from roofing or plumbing problems; and structural flaws like frame or foundation problems. These flaws may result in expensive repairs and major property damage, which may start legal disputes about who is responsible for what and how much money is necessary.

FAQs

Q: What Is the Difference Between Commercial Litigation and Consumer Litigation?

A: The difference between commercial litigation and consumer litigation is that with the former, the legal disagreement is between companies or commercial organizations and matters like partnerships, corporate governance, and contracts. Conversely, consumer litigation deals with disagreements between customers and companies.

Commercial litigation concentrates on business-to-business disputes, whereas consumer litigation handles business-to-individual problems. The main distinction between the two types of litigation is the nature of the legal issues and the parties involved.

Q: What Is a Commercial Litigation in Business?

A: Commercial litigation in business refers to legal conflicts resulting from business operations, such as contract breaches, partnership conflicts, intellectual property disputes, and antitrust violations. Commercial litigation aims to settle disputes that may have an impact on a company’s operations, reputation, or financial stability.

Commercial litigation involves business transactions or connections. Because of the complexity and scope of the commercial issues involved, these kinds of claims frequently call for specific legal knowledge.

Q: How Much Does a Real Estate Lawyer Cost in South Carolina?

A: The cost of a real estate lawyer in South Carolina varies based on factors such as the lawyer’s experience, the complexity of the case, and the region. Generally speaking, a real estate lawyer will charge by the hour. Some may offer flat fees for specific services. It’s advisable to obtain quotes from multiple lawyers and understand their fee structures before hiring.

Q: What Is Considered Complex Commercial Litigation?

A: Complex commercial litigation refers to legal disputes involving intricate legal issues, substantial financial stakes, multiple parties, and extensive documentation.

Class actions, antitrust claims, significant contract disputes, intellectual property wars, and securities litigation are common types of cases. These cases are more difficult to handle and rectify than typical commercial litigation because they call for complex legal strategies, substantial financial resources, and in-depth understanding of numerous legal disciplines.

Contact Mack & Mack Attorneys

If you or someone you know is involved in commercial real estate litigation, Mack & Mack Attorneys can help. Contact us today to speak with a representative.