A business may enter into litigation for a number of reasons. Whatever the cause, every case has the potential to become complex, even if the matter seems relatively simple at first. A few of the most common types of business litigation include partnership disputes, employment disputes, contract disputes, breach of fiduciary duty cases, franchise disputes, and debt collection actions.

South Carolina’s Unfair Trade Practices Act (SCUTPA), SC Code Section 39-5-10 et al, largely mirrors Section 5 of the Federal Trade Commission Act. The Act prohibits deceptive trade practices to protect consumers from unfair competitive behavior, unfair practices, and unfair acts in the marketplace that affects the public.

For example, a family purchases a home from a development company, but many of the promised amenities are never provided to the family.  Such a family may recover actual damages under SCUTPA because of the unfair and deceptive practices used to induce the family to purchase the home. If the development company knowingly or willfully violated SCUPTA, the Court may award treble damages (i.e. three times actual damages) plus attorney fees and court costs to the family.

Fraud in business occurs when an individual or company takes action that is dishonest or illegal in order to gain an advantage over another individual or company. Fraud has a great negative impact on the business, employees, and third parties. Fraud can occur in a number of ways, but it typically involves taking advantage of confidential information and using it or omitting it for the individual’s or business’ gain.

For example, a business may alter their accounting records to appear as though they have a higher revenue to entice buyers or investors. Or, a corporate seller of real estate may provide buyers with falsified information withholding the fact that the property has an underground, surface-water drainage easement.

Under the South Carolina Trade Secrets Act, SC Code Section 39-8-10 et al, businesses have a right to maintain the confidentiality of trade secrets, whether that trade secret is a product, method, client list, or anything else that is of economic value to the business. Others misappropriate trade secrets by improper means including things like theft, bribery, misrepresentation, breach of a duty to maintain secrecy, duties imposed by law, statute, contract, court order, license, or protective order.

When employees or anyone else violates South Carolina’s Trade Secrets Act, the business that suffered losses can file a tort action against them. To be successful with that action, the trade secret cannot be generally known to the public. It is also helpful if businesses enter into confidentiality agreements that protect their trade secrets.

Tortious interference occurs when an individual or another business intentionally damages your company’s contractual or business relationships causing serious injury. A contract or business relationship lost due to the actions of angry employees or unfair competitor practices can leave your company in shambles.

You may have a tortious interference claim if someone has induced the breaking of a contract with your business or has caused a business relationship to end. The wrongdoer must know of the contract and must have had the intention of procuring its breach without any justification. Those who intentionally and improperly interfere with the performance of a contract between your company and another party by inducing or causing the other party not to perform are subject to money damages and injunctive relief.

Beth Santilli Law can help you mitigate these damages through both legal and equitable avenues when contracts and relationships that took years to establish and make profitable are in jeopardy. Call us for help if your contracts or business relationships are being unlawfully violated.