Questions Of Fact Vs. Law In Business Litigation

Business litigation can feel a bit strange to people who've never had to deal with it. One of the more unusual issues that come up during such civil cases is whether a problem is a question of fact or a question of law. If you're wondering what all this is about, it's worth taking a look at what differentiates the two.

What is a Question of Fact?

In American law, a question of fact exists when two parties fundamentally disagree about what exactly happened. A shipper might insist that they sent cargo to a customer in strict accordance with their contract. The customer, conversely, might insist that the shipment never happened and that the shipper is in breach of the deal.

Cases built on questions of fact tend to focus on the discovery process. In American civil law, both sides have an obligation to disclose any evidence or testimony they have that might shed light on the case. This applies even if the evidence were likely to bolster the opposing party's argument.

During the discovery process in business, attorneys often seek communications from inside companies. It's not uncommon to closely examine emails, texts and memos to identify how the opposite party actually was dealing with the facts that are in questions.

These cases are known to end up being settled when a few key pieces of evidence turn up in discovery. For example, a company's internal communications might show they knew about a shipment issue all along and were just hoping things could be cleared up before a lawsuit came of it. On the downside, cases driven by questions of fact are also more likely to require a judge or a jury to be the final word if two sides can't come to a settlement.

What is a Question of Law?

Business interactions, especially contracts, are governed by a host of laws. When a case is considered to be about a question of law, that means the two sides fundamentally agree on what the facts were. The dispute is over the legal interpretation of what should come next.

Suppose a clause in a contract covered force majeure, the idea that certain events are so-called "Acts of God" or the products of an unpredictable and stronger force. A question of law might arise regarding whether a weather event, such as a snowstorm, was bad enough to rise to the level of being a greater force.


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