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What Happens If Your eCommerce Business Goes to Court

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As with any business owner, keeping your internet business running smoothly and making money is the goal for your eCommerce brand. However, it is, of course, possible that along the way, your internet brand has a dispute with another business. If so, it is good practice to avoid Commercial Court action, such as a commercial claim, wherever possible. Rather, you and the other party should settle your dispute using alternative dispute resolution. However, you may find that alternative dispute resolution does not help you and the other party resolve the dispute. At this point, you both are likely to find yourselves in a formal legal dispute. This article explains the key aspects of going to court and commercial case management that you should be aware of if your eCommerce business dispute goes to court.

Going to Trial Process 

There are two key stages you and your eCommerce business will go through if your dispute is litigated. The first stage is the case management stage. This occurs before the trial commences. The second stage is the court hearing itself. Below we examine the critical aspects of these stages of court action.  

1. Directions Given by the Judge

In commercial cases, a judge may approve or change directions you and the other party previously agreed on. The judge in your matter may also issue directions that you and the other party must follow.

Directions are a formal timetable detailing when each of you will pass each other the evidence. Evidence can include, for example, witness statements. Directions help to ensure that:

  • your commercial court case moves forward in an effective and organised fashion; 
  • that all the evidence that needs passing between the parties has been exchanged; and
  • that the evidence is received well ahead of the trial date. 

2. Case Management Approach

It is also essential that your eCommerce business understands the commercial court’s approach towards case management. This is because not adhering to the court’s approach could mean either:

  • a punitive costs order for your internet business; or
  • striking out the case of the offending party. 

The court’s approach towards case management is proactive. They may make orders for either party to produce documents within a specific deadline, and not doing so could have the above implications. Also, the court may schedule:

  • more case management conferences; and
  • a pre-trial review. 

3. What Happens at Trial?

As an eCommerce business owner, you need to understand what happens if your dispute goes to trial in court. Notably, given it is always advantageous to settle outside of court, you can negotiate a resolution at any point during the commercial dispute. This includes just before your trial commences. A resolution will, of course, mean a trial is no longer necessary.

However, let us assume your dispute proceeds to court. In this case, in a commercial case trial, each business’s legal representative will present an opening statement to the court. Your business’s legal representative will summarise your position in the matter. The other party’s legal representative will likewise summarise their client’s position in the matter. 

Next, your and the other party’s legal representative will present their respective arguments to the court. You and your eCommerce business will be deemed the ‘claimant’ if you have instigated proceedings. A claimant is the aggrieved party, the party making a claim of some wrongdoing perpetrated by the defendant. The defendant or respondent is simply the party that is answering the claim made by the claimant. The claimant goes first, and the defendant follows in terms of presenting their arguments to the court. Assuming you are the claimant, your legal representative will present your arguments to the court first. The defendant’s lawyer will then present their arguments to the court.

Your legal representative can cross-examine the defendant. It is also likely that you will be cross-examined by the defendant’s lawyer. Each side’s legal representative will then summarise their case before the court.

At the end of a commercial court trial, the judge will consider all they have seen and heard. This can take up to six weeks in the form of a written judgement. The judge will then consider any costs for the case. 

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Key Takeaways

Your eCommerce brand may, at some stage, need to go to a commercial court. However, you should always avoid litigation where you can with any business dispute. If you need to go to commercial court, you must understand case management hearings and court trials. This article has explained three critical points about this. It first explains directions and the importance of these. The article points out the court’s approach to commercial disputes and case management. It also explains the consequences of not adhering to the court’s orders regarding case management. Finally, the article looks at what happens during the trial in terms of the actions and orders of the hearing.  

If your eCommerce business is likely going to go to court over a dispute that cannot be resolved by any other means, contact our experienced eCommerce lawyers as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page

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Clare Farmer

Clare Farmer

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