What Happens When a Business Deal Goes Wrong in North Carolina?

It’s a feeling in the pit of your stomach.

It started with a text message you got on a Friday night. Or maybe it was a formal-looking letter. Or maybe… the money just wasn’t in the account.

A promise has been broken.

You are a business owner. You’ve poured your life, your sweat, and your family’s savings into building something from nothing in North Carolina. You’ve served customers in Greensboro, High Point, Winston-Salem, and all over the Triad.

You’re used to solving problems. But this… this is different.

• A business partner you trusted is locking you out of the bank accounts.
• A supplier you had a “handshake deal” with just tripled their price, and it’s going to put you out of business.
• A competitor is telling lies about you to your best customers.
• An employee you treated like family just quit and took your entire client list with them.

It’s a nightmare. And it’s not just “business.” It’s personal. It’s your money. It’s your reputation. It’s your future.

We are the team at Huggins Law Firm. And we want you to know one thing: You are not alone in this.

We have sat in our offices in Greensboro with hundreds of people just like you. We’ve helped them with their most personal legal battles—from Family Law to Estate Planning to fighting a Criminal Law charge.

And we know that a fight for your business is one of the most stressful, high-stakes fights of your life.

This page is here to help. We’re not going to use a bunch of confusing lawyer-talk. We are going to explain, in plain English, what a “business lawsuit” is and what your rights are. We want you to give you the information you need to feel back in control.

What is “Business Litigation,” Really?

“Business Litigation” is just a fancy, $100 term for a business lawsuit.

That’s it. It’s a fight.

It’s a legal disagreement between you and another person or company. And because you can’t work it out on your own, you have to go to court to let a judge or jury “litigate,” or decide, who is right and who is wrong.

A lot of people think this is just for giant companies like Apple or Bank of America.

They are wrong.

In fact, here’s a stat that might shock you: Somewhere between 36% and 53% of all small businesses are involved in a lawsuit in any given year.

Think about that. Look to your left and right. Almost half of all the small businesses you see will face a serious legal fight this year.

This isn’t a “big company” problem. This is a small business problem. It’s a problem for the restaurant in Asheboro, the trucking company in Burlington, and the tech startup in Winston-Salem.

Your business is your biggest asset. This guide will help you protect it.

What Are the Most Common Business Lawsuits in North Carolina?

A lawsuit can be about anything. But in our years of experience, we see the same kinds of fights over and over.

Here in North Carolina, the “big” business lawsuits (cases over $25,000) are filed in Superior Court. And the official data from the NC Judicial Branch shows the number one type of civil case is “Breach of Contract.”

It all comes down to a broken promise.

Let’s look at the most common types of cases we see in the Triad.

1. Breach of Contract (The “Broken Promise” Case)

This is the king of all business lawsuits.

A contract is just a set of promises. “You promise to pay me $10,000. I promise to paint your building.”

• What is a contract? It’s an agreement. It can be a 50-page document written by a lawyer. Or it can be a simple one-page invoice. It can even be a “handshake deal” or an oral agreement (though these are much harder to prove).
• What is a “breach”? It means someone “broke” their promise.
  • The painter never showed up. (Non-performance)
  • The painter showed up but used the wrong color and made a mess. (Poor performance)
  • You decided to only pay them $5,000 instead of $10,000. (You breached!)

When a promise is broken, the person who was harmed can sue. You can ask the court to give you “damages”—money to make you “whole” again.

For example, you can sue for the money it cost you to hire a new, more-expensive painter to fix the first one’s mess.

2. Partnership Disputes (The “Business Divorce”)

This one is the most painful.

You started this company with your best friend. Or your brother. Or your college roommate. You were a team. You did everything on a handshake.

And now… you’re enemies.

You’ve found out your partner is:

• Stealing from the company bank account.
• Making huge decisions without asking you.
• Not showing up for work.
• Using the company credit card for personal vacations.

This is a “business divorce.” And just like in our Family Law practice, it is emotional, messy, and all about the money.

When you are a partner or a part-owner (a “shareholder”) in a company, you have a “fiduciary duty” to the other owners.

What is that? A “fiduciary duty” is the highest level of trust in the law. It means you promise to be the “super-responsible friend.” You promise to always act in the best interest of the company, not your own interest.

When your partner starts stealing, they have breached that sacred duty.

Our lawyers know how to fight this. We can go to a judge and ask for an emergency “Temporary Restraining Order” (TRO) to freeze the bank accounts and stop the stealing today. Then, we can fight to either get you paid or get you full control of the business.

3. Business Fraud (The “They Lied to Me” Case)

This is different from a simple broken promise. This is when someone tricked you on purpose to get your money.

Fraud is a lie.

• “Yes, this restaurant is making $20,000 a month.” (They were really losing money.)
• “Yes, this used equipment is in perfect working order.” (They knew it was broken.)
• “Yes, this is a great investment.” (They were just taking your money in a Ponzi scheme.)

This happens all the time when people are buying or selling a business.

To win a fraud case, you have to prove the person knew they were lying and they did it to get your money.

This is where our firm’s experience is a huge help. A bad fraud case isn’t just a business lawsuit. It’s a crime. Our Criminal Law lawyers know exactly what “Embezzlement” and “Fraud” look like. We know how to gather the proof, follow the money, and show the judge and jury exactly how you were tricked.

4. Tortious Interference (The “You Stole My Customer” Case)

This one sounds fancy, but it’s simple. “Tort” is just an old word for a “wrong.”

You have a contract with a big client. Your competitor knows about this contract. Your competitor calls your client and says, “Break your contract with them and come with me. I’ll give you a better deal.”

Your client breaks the contract and leaves.

You can, of course, sue your client for breach of contract. But you can also sue your competitor for “tortious interference.”

You are suing them for causing the breach. This is a powerful tool to protect your business from poachers and bullies.

5. Unfair & Deceptive Trade Practices (The “Bully” Case)

This is a huge one, and it’s a big secret weapon for a good North Carolina lawyer.

Our state has a law, called Chapter 75-1.1, that protects people from “unfair or deceptive” acts in business.

This is a very broad rule. It can include:

• False advertising (“bait and switch”).
• A “competitor” writing fake 1-star reviews about you.
• A landlord charging you hidden, illegal fees.
• Any time a business acts in a way that is “immoral” or “unethical.”

Here is the “little-known” part that makes this law so powerful:

If you win your case under Chapter 75, the judge can triple your damages.

It’s called “treble damages.” If the jury says you were harmed for $50,000, the judge can turn to the person who hurt you and say, “You are paying $150,000. And you are also paying for all their lawyer’s fees.”

This is how we get the attention of a big company that thinks it can just bully you.

6. Construction & Real Estate Disputes

The Triad is booming. All that growth means new buildings, new houses, and new contracts. And where there are contracts, there are fights.

• A general contractor doesn’t pay his subcontractor (you).
• A homeowner says your work is terrible and refuses to pay the last check.
• A supplier delivers a “bad batch” of concrete, and now you have to redo the whole job.

These fights are about “mechanic’s liens” (a way to get paid) and complex contracts. Our lawyers have helped many hardworking contractors and homeowners in Graham, Burlington, and the new “boom” areas make sure they are treated fairly.

What is the Business Lawsuit Process in North Carolina?

So, you’re in a fight. What happens next?

The legal system is slow. It is not like what you see on TV. It is a long, step-by-step process. A good lawyer is your guide for this long journey.

Step 1: The “Warning Shot” (The Demand Letter)

You don’t always have to file a lawsuit. The first thing a good lawyer does is write a very strong, very professional “Demand Letter.”

This letter is the “warning shot.” It’s sent to the other side, and it says: “My name is… I am the lawyer for… You have broken this promise… This is what you did wrong… You have 10 days to pay my client $50,000, or we will be filing a lawsuit in Guilford County Superior Court. Govern yourself accordingly.“

You would be amazed how often this works.

That person who was ignoring your calls? They are not ignoring a letter from Huggins Law Firm.

Step 2: Filing the Lawsuit (The “Complaint”)

If they ignore the letter, it’s time to fight.

Your lawyer will draft a “Complaint.” This is a legal document that we file with the court. It tells your side of the story, in legal terms. It says who you are, what the other person did, and what you want the judge to do about it.

We then hire a process server or the local Sheriff to “serve” the Complaint on the other person. That’s the moment it becomes real.

Step 3: The “Discovery” Phase (The “Show Your Cards” Phase)

This is the longest and, honestly, the most expensive part of any lawsuit. It can last for six months or even a year.

“Discovery” is the legal-enforced “show your cards” phase. Each side gets to discover what the other side knows.

We will send the other side lists of questions they must answer under oath.

• “Admit you signed this contract.”
• “Admit you never paid the invoice.”
• “List every person you spoke to about this deal.”

We will ask for documents.

• “Give us all your text messages.”
• “Give us all your emails.”
• “Give us all your bank records.”

They can’t hide them. If they do, a judge will force them to. This is where we find the “smoking gun”—the email where your partner admits to his friend that he was stealing.

Step 4: Mediation (The “Let’s Make a Deal” Phase)

Here is the best secret about North Carolina law.

In our state, for almost all of these big business cases, you are required to go to “mediation” before you can go to trial.

What is mediation? It’s a day where everyone sits down in a conference room with a “mediator” (a neutral, third-party lawyer). The mediator’s only job is to help you settle the case.

They will walk back and forth between the two rooms, all day, and say:

• “They are offering $20,000.”
• “You are asking for $100,000. That’s too high.”
• “The other side’s lawyer has a good point. You might lose this at trial.”

A Stat You Need to Know: The NC Mediated Settlement Program is very successful. In a typical year, around 60% of all cases that go to mediation get settled that day.

That means 6 out of 10 fights end at this table. You get a check. You get your life back. You never have to see a judge. This is almost always the best result for a business owner.

Step 5: The Trial (The “Going to Court” Phase)

If you can’t make a deal, then you go to trial.

This is the “Law & Order” part. You are in a real courtroom, in front of a real judge and a 12-person jury.

Your lawyer’s job is to tell your story. To present your evidence. To cross-examine the other side and show the jury why they lied.

A trial is a huge risk. It is all or nothing. You can win big… or you can lose everything.

Our team has stood in front of juries. We have fought these fights. We are not afraid of a courtroom. We will prepare you for your day in court, and we will be standing right next to you, fighting for you every step of the way.

How Much Does a Business Lawsuit Cost? (The Big, Scary Question)

We will be honest with you. Business litigation is expensive.

In our Personal Injury practice, we work on “contingency.” That means you pay us nothing unless we win your case.

Most business lawsuits are not like that.

Most of the time, business lawyers work on a billable hour. You pay an “advance” (called a retainer), and the lawyer and their team bill you for every hour they spend on your case.

This can be very hard for a small business owner. We know that.

But we are different. Because our firm is not a giant “business-only” tower, we are flexible. We are creative.

• Contingency: For some cases (like a “Treble Damages” case or a big fraud case), we can work on a contingency.
• Hybrid: Maybe you pay a smaller hourly fee, and we also take a smaller percentage.
• Flat Fee: For simple things, like writing a strong Demand Letter, we can just charge you a one-time “flat fee.”

The Real Question: The question isn’t “How much does a lawsuit cost?” The real question is: “How much is it costing you to do nothing?“

How much is it costing you every month that your partner is stealing? How much is it costing you every day that your biggest client isn’t paying their bill?

When you look at it that way, hiring the best lawyer you can find isn’t an expense. It’s an investment in saving your company.

The Huggins Law Firm Difference: We See Your Whole Life

This is the most important part.

There are a lot of lawyers in North Carolina. But most of them only see one thing.

• The business lawyer only sees the contract.
• The divorce lawyer only sees the family.
• The criminal lawyer only sees the charges.

They don’t see how all these pieces are connected. We do.

Our team is one of the only firms in the Triad with deep, courtroom-tested experience in all the areas that affect your life.

When you come to our office in Greensboro for a “business dispute,” we see the whole board.

• We see that your “business divorce” from your partner is a massive Estate Planning problem. (If you die, does your partner get everything? Your “buy-sell” agreement is a core part of your will.)
• We see that the “fraud” in your business deal isn’t just a lawsuit… it’s a Criminal Law case. We know how to talk to the DA and the civil court judge.
• We see that the stress from this fight is tearing your marriage apart, and you need a Family Law lawyer who can protect your business before it gets split in a divorce.
• We see that this lawsuit could be the one thing that pushes your company over the edge, and you need a Bankruptcy lawyer on standby to protect you and your personal assets (like your house) from it all.

When you’re searching online at 2 AM for a “business litigation lawyer near me,” you’re not just looking for a “lawyer.” You are looking for a protector. An advisor. A fighter.

You are looking for a team that sees you, not just your case file.

We are that team. We are your neighbors. We fight for businesses in Greensboro, High Point, Winston-Salem, Burlington, Asheboro, Graham, and Kernersville. We know the local courts. We know the other side.

We are here to help you win this fight.

Key Takeaways: What to Remember

• Business litigation is just a “lawsuit” over a business fight.
• It’s a small business problem. Almost half of all small businesses will face a lawsuit in any given year.
• The most common fights are over “breach of contract,” “partnership disputes,” and “fraud.”
• NC has a “secret weapon” (Chapter 75) that can make a bully pay triple damages.
• Most cases settle. The “mediation” process in North Carolina is very successful and helps you get a deal done without a trial.
• The cost of doing nothing is always higher than the cost of hiring a good lawyer.
• A good lawyer sees the whole picture—how your business fight impacts your family, your future, and your freedom.