Principal Attorney
Companies in Korea that do business in the U.S. understand that they face the potential risk of legal disputes and litigation with their counterparties should the relationship sour. Knowing what factors and considerations to evaluate when facing international business litigation can give your company a head start in protecting its rights and interests.
Understanding What International Business Litigation Entails
International business litigation occurs when two companies or entities from separate countries have a legal dispute over their business relationship. It can involve significantly more complex legal issues than litigation between two domestic businesses, including jurisdictional issues, serving process, obtaining evidence and witnesses in the jurisdiction hearing the dispute, and the potential for enforcing a foreign judgment. Korean companies engaged in business in the U.S. and other countries may find themselves in international business litigation if a dispute develops with their customers or business partners.
Common examples of legal disputes that can give rise to international business litigation include:
- Contract Disputes – Contract disputes, such as breaches of contract or failures to remit payment, can lead to litigation between companies from different countries.
- Intellectual Property Issues – Many international litigation disputes arise from intellectual property issues, including patent infringement, copyright and trademark misappropriation, and gray market sales.
- Trade Disputes – Issues related to international trade laws can cause litigation disputes between businesses trying to ship goods between each other’s countries.
- Partnership or Joint Venture Disputes – Companies in different countries that engage in partnerships or joint ventures may find themselves in litigation when their business relationships fall apart due to disagreements or misunderstandings.
In many cases, international business litigation occurs not through the courts but rather through arbitration. Multiple national and international organizations, such as the American Arbitration Association’s International Centre for Dispute Resolution, the International Chamber of Commerce, and the United Nations Commission on International Trade Law, have established arbitration rules or forums for international business disputes.
Preparing for International Business Litigation
Korean companies facing the prospect of international business litigation with U.S. parties can prepare for their case to put themselves in a favorable position to seek a fair resolution by:
- Conducting due diligence before entering an international business relationship to minimize the risk of disputes and potential liability for your business
- Including contractual provisions that can facilitate an efficient resolution of a legal dispute, such as choice-of-law and dispute resolution contracts, and carefully reviewing contractual language to minimize the risk of misunderstandings or disagreements
- Working with experienced counsel in Korea and the U.S. to protect your company’s interest in both jurisdictions.
Critical Considerations for Korean Companies
Korean businesses that find themselves in litigation with U.S. companies must evaluate various key considerations surrounding their business dispute and potential litigation, such as:
- Jurisdiction – A court must find that it possesses jurisdiction to hear the case, including the authority to bind the parties to a judgment. Courts may also consider whether another jurisdiction represents a more appropriate forum for the case.
- Choice of Law – Although you may have the right to bring an international business dispute in a specific forum, that forum’s court may apply another jurisdiction’s law to the case under the forum’s choice of law rules.
- Navigating Cross-Border Legal Systems – International business litigation can involve various complications with evidence and witnesses, including compelling production of documents from parties or non-parties in other countries or compelling witnesses residing in other countries to testify in the case.
- Litigation vs. Alternative Dispute Resolutions – The contract from which your company’s legal dispute arose may require you and your counterparty to go through an alternative dispute resolution process, such as mediation or arbitration. Even if the contract allows you to pursue traditional court litigation, your business should evaluate the pros and cons of pursuing alternative dispute resolution to resolve the case.
Contact an Experienced Business Litigation Attorney Today for Advocacy and Guidance
When your Korean company finds itself in a business dispute in the U.S., you need experienced legal advice and advocacy to protect your business’s rights and interests. Contact Sul Lee Law Firm PLLC today for a confidential consultation with a knowledgeable business litigation lawyer. We look forward to discussing your case and reviewing your company’s legal options for pursuing a favorable resolution to the dispute.