Business Disputes

Is arbitration better than court for business disputes?

It depends. Arbitration is generally faster and confidential, which protects business secrets. However, it can be more expensive upfront. Georgian courts are cheaper but slower and public.

Can I freeze my opponent's bank accounts?

Yes, you can file a motion for "interim measures" (security of claim). If the court believes there is a risk the debtor will hide assets, it can freeze accounts or property before the final verdict.

What if the contract is governed by foreign law?

Georgian courts can apply foreign law (e.g., English law) if the contract stipulates it. However, you will need legal experts to prove the content of that foreign law to the Georgian judge.

Can I claim lost profits?

Yes, under the Civil Code of Georgia, you can claim "lost profits" (lucrum cessans), but you must prove with high certainty that you would have earned this income if the breach hadn't occurred.

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Business Disputes represent one of the broadest and most complex categories of commercial law, encompassing any disagreement arising between business entities. As Georgia's economy develops, business relationships become increasingly intricate, heightening the risk of conflicts. Whether it involves a large corporation, a medium-sized enterprise, or an individual entrepreneur, a legal dispute can become a source of serious financial loss and reputational risk. Business disputes require deep knowledge not only of general civil law but also of specific fields — corporate, tax, intellectual property, and labor law. Timely and qualified legal intervention often determines a company's survival and future development. Legal.ge offers access to experienced litigators specializing in commercial disputes who protect clients' interests in court, arbitration, and at the negotiation table.

What Do Business Dispute Services Cover?

This service covers the full spectrum of commercial conflicts. Lawyers work on both dispute prevention and resolving existing problems. Services include:

  • Contract Disputes: Breach, non-performance, or improper performance of agreements signed with suppliers, distributors, clients, or contractors.
  • Corporate Disputes: Disagreements between partners and shareholders, director liability issues, dividend distribution, and alienation of shares.
  • Debt Recovery: Recovering accounts receivable through legal means, including insolvency (bankruptcy) proceedings.
  • Unfair Competition: Disputes regarding violations of competition rules, misappropriation of trade secrets, and abuse of dominant market position.
  • Intellectual Property Disputes: Commercial disputes related to the infringement of trademarks, patents, and copyrights.
  • Insurance Disputes: Disagreements with insurance companies regarding compensation for damages related to business insurance.

Real-World Scenarios Where You Need a Lawyer

For example, your company ordered expensive machinery from abroad, but the supplier missed deadlines and delivered defective goods, halting production. Losses are increasing daily. A qualified lawyer helps you claim damages and penalties. Another scenario: a competitor uses a logo similar to yours, misleading consumers and taking your market share. This is unfair competition, requiring a lawsuit to stop. Another common case is when a partner (shareholder) secretly founds a competing company and poaches clients. Here, corporate law mechanisms must be used to hold the director or partner liable.

Georgian Legal Framework

The primary sources regulating business disputes are the "Civil Code of Georgia" (law of obligations), the "Law of Georgia on Entrepreneurs" (corporate issues), and the "Civil Procedure Code of Georgia" (rules of litigation). Competition issues are regulated by the "Law on Competition", and insolvency by the "Law of Georgia on Rehabilitation and the Collective Satisfaction of Creditors". It is important to know that when reviewing business disputes, the court often relies on the contract signed between the parties, which can supersede statutory provisions (principle of private autonomy) if it does not contradict mandatory norms. Therefore, correct analysis of the contract is the key to success in a dispute.

The Process Step-by-Step

The process begins with risk assessment: a Legal.ge specialist reviews documentation and evaluates the chances of winning. The next stage is pre-litigation negotiation — often a business dispute can be resolved by sending a demand letter and sitting at the negotiation table. If an agreement cannot be reached, a lawsuit is prepared and filed in court (or arbitration). Court proceedings begin, involving the presentation of evidence, witness examination, and expertise. The process concludes with the rendering of a decision and, if necessary, its forced enforcement (e.g., freezing accounts, selling property at auction).

Why Choose a Specialist on Legal.ge?

A business dispute is not a place for experiments. A mishandled case can lead to company bankruptcy. Legal.ge allows you to find lawyers who specialize specifically in commercial law and understand the language of business. Specialists selected through our platform are focused not on dragging out the process, but on achieving results quickly and effectively.

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