Litigator vs. Transactional Lawyer: Which One Does Your Business Need?

No matter the size of your business, as a business owner you can benefit from retaining a transaction lawyer — or at the very least, consulting with one on a one-time or regular basis.

By providing invaluable legal counsel on a wide range of business matters, from the legal steps required to properly form a company to California labor laws you must comply with, transaction lawyers can help your company avoid legal trouble and ensure your rights are well protected if you encounter problems with the law.

Unfortunately, a lot of small and medium-sized business owners don’t consult this type of lawyer — also commonly referred to as a business or corporate lawyer — until they’re faced with a serious legal issue, such as being sued by an employee.

At that point, it would be in a business owner’s best interest to work with a litigator rather than a transaction attorney.

You can decide which type of attorney your business needs right now in this blog post, which will go over the key differences between litigators and transactional attorneys.

  • Litigators: Courtroom Warriors

The process of bringing a matter before a court is known as litigation in law.

It frequently occurs when two or more parties (for instance, a supplier and business owner) are unable to reach a mutually agreeable resolution to their legal dispute and go to court to have a judge or jury decide the issue on their behalf. Litigators – often portrayed in TV legal dramas fighting cases on behalf of their clients – are attorneys who specialize in defending businesses and individuals in court.

A litigator would be brought in by a business after a deal has gone wrong, for example, or when they committed a mistake and the dispute is heading for litigation. Common business disagreements that litigators handle include: 

A litigator will handle every step of the complex court process on your behalf – from issuing proceedings and filing a defense to pre-trial motions and trial – when you hire them. They could also help you settle a business dispute through negotiation before it goes to court.

To be able to effectively defend your company’s rights and interests in the courtroom, a litigator needs to be skilled at:

  • Legal research. To build a strong case strategy, a litigator needs to be capable of conducting in-depth research, assembling proof, and analyzing precedent-setting court decisions.
  • Negotiation. Although litigation entails court appearances, litigants routinely attempt to work out issues out of court through negotiations with opposing counsel. A competent negotiator can help warring parties reach satisfactory agreements.
  • Articulating their arguments persuasively in front of judges and juries, convincing them to find in favor of their clients.
  • Quick thinking, which enables a litigator to adjust to unforeseen circumstances throughout a trial fast. A strong grasp of legal principles enhances their ability to do this.
  • Transaction Lawyers: Architects of Legal Agreements

Transaction attorneys are different from litigators because they practice mainly outside of the courtroom. 

The majority of their time is spent in offices safeguarding the interests of business owners by anticipating and addressing possible legal problems before they arise.

To accomplish this, transaction attorneys advise entrepreneurs on legal matters related to business transactions, helping them draft airtight contracts, including purchase and sale agreements, employment contracts, nondisclosure agreements, and independent contractor agreements, negotiate favorable terms, comply with industry-specific laws and regulations, etc.

A competent transaction lawyer must be skilled in:

  • Drafting and reviewing contracts, ensuring every legal document they create isn’t ambiguous and covers a business from any future legal challenges.
  • Performing due diligence, particularly when they’re advising business owners in merger and acquisition deals. Their thorough due diligence should reveal any legal and financial risks and liabilities in a company before you invest in it.
  • Negotiation. Achieving mutually beneficial business agreements requires strong negotiation abilities.
  • Business. Experienced transaction lawyers are able to offer owners of companies comprehensive support by having extensive knowledge of the business ramifications of the legal agreements they propose.
  • Interpersonal communication. Transaction attorneys often work closely with clients to understand their business objectives and help them achieve their goals.

As a business owner, you should collaborate with a transaction attorney from the beginning of your company to prevent legal complications from happening and a litigator once a legal matter has progressed to court.

NOTE: Throughout their careers, many business attorneys find themselves working in both litigation and transaction law. Some begin in litigation and move into transactional work later on – while others often alternate between the two based on their client’s demands.

Read this post we wrote to find out more about how a transaction attorney can help you manage your business more smoothly:

Gallagher Krich, APC: Experienced San Diego, CA, Transaction Attorneys and Litigators

Do you run a business and need legal counsel to shield your enterprise from costly legal liabilities, or are you already embroiled in a legal dispute that’s likely to go to trial?

Make an appointment to discuss your legal concerns by giving Gallagher Krich, APC a call at (858) 926-5797 or filling out our online form.

With 30+ years of experience in business law, our attorneys can offer you legal advice on many business transaction matters, like company formation, contract drafting and negotiation, intellectual property protection, and necessary business permits and license application processes, all of which will help you stay out of legal trouble.

If you’re facing a legal obstacle, Gallagher Krich, APC, is confident that we can help you resolve it as well. We have a proven track record of quickly settling business legal issues, including workers’ compensation disputes, involuntary dissolution, trademark infringement, contract breaches, fraud, and misrepresentation for our clients.

In the event that a dispute cannot be settled amicably through discussions or mediation (Attorney Troy Krich is a certified mediator), our competent litigators will gather the necessary evidence to build a compelling legal case and fight valiantly to secure a just settlement for you in court.

Call Gallagher Krich, APC, now to arrange a free consultation to talk about how we can help you avoid or handle legal challenges so you can focus on growing your company without having to worry about being sued or other expensive legal issues!

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