Small Business & Commercial Litigation
A business dispute rarely stays contained. Contracts unravel, partners pull in different directions, vendors default, and revenue starts to move. Mahrouyan Law represents small businesses, founders, and other commercial parties in contract disputes, ownership disputes, business torts, arbitration, and litigation throughout Orange County and selected matters elsewhere in California.
Who the firm represents
- Small and mid-sized businesses
- Founders and controlling shareholders
- Vendors, contractors, and service providers
- Parties to franchise, licensing, and distribution agreements
Common disputes and services
- Contract disputes
- Partnership, LLC, and shareholder disputes
- Vendor and service-provider disputes
- Fraud and business torts
- Franchise, licensing, and distribution disputes
- Pre-litigation demands
- Arbitration
- Litigation
What may be at risk
- Ongoing revenue and customer relationships
- Ownership stakes and control of the entity
- Reputation with vendors, lenders, and partners
- Legal fees, exposure, and enforceable judgments
Immediate practical steps
- 01Avoid reactive or unreviewed communications that could later be misunderstood or used against the business.
- 02Collect governing contracts, emails, and payment records in one place.
- 03Identify and document any immediate financial or operational harm.
- 04Note upcoming deadlines, notice provisions, and statute-of-limitations concerns.
Evidence and documents to preserve
- Executed contracts, amendments, and side letters
- Communications with the opposing party
- Invoices, payment records, and accounting
- Corporate formation and governance documents
The firm's approach
Business disputes are decided by leverage, not by rhetoric. The firm builds a factual and documentary record, identifies where the client has leverage—legally, commercially, and practically—and moves the matter toward resolution through negotiation, arbitration, or litigation, on terms that make sense for the client's business.
Frequently asked questions
Do I need to file a lawsuit right away?+
Often no. Many commercial disputes are resolved through a well-prepared demand and negotiation. Filing is a strategic decision, not a reflex.
Can the firm handle disputes governed by an arbitration clause?+
Yes. Many commercial and franchise contracts require arbitration, and the firm handles matters in that forum.
How are fees structured?+
Fee arrangements are matter-specific and are discussed transparently before engagement.
Small Business & Commercial Litigation Insights
- Ashtel’s $9.4 Million Fraud Verdict: When Can an LLC Member Be Personally Liable? →
A reported $9.4 million Ashtel fraud verdict illustrates the distinction between commercial nonpayment and personal liability for misrepresentation.
- California Court Upholds Contractor Insurance Rescission After Los Alamitos Fire →
A California appeals court upheld the rescission of a contractor’s insurance after a Los Alamitos fire, illustrating why a party relying on a contractor’s coverage may still be left without it.
- Adelaida Winery Dispute: When Ownership Conflicts Threaten a Business →
The Adelaida winery dispute highlights why related-party transactions, corporate governance, and ownership agreements matter for business continuity.
- Apple–OpenAI Trade-Secret Dispute: Expedited Discovery and Digital Evidence →
Apple’s discovery ruling illustrates how federal courts approach early evidence requests, confidentiality, and preservation in trade-secret litigation.
- Qualcomm–Arm’s $2 Damages Award: Why Liability and Recovery Are Different →
Qualcomm’s mixed verdict against Arm illustrates the distinction between liability, nominal damages, and the broader economic stakes of commercial litigation.
- Can I Sue a Contractor for Damaging My Property in California? →
A contractor who damages property may be responsible under contract, negligence, or another theory. Recovery depends on duties, causation, provable losses, and procedural requirements.
- Proposed $125 Million GKN Settlement: What Garden Grove Businesses and Residents Should Know →
The proposed GKN agreement includes a claims program of up to $100 million. Business-loss limits, conditional dates, and release terms deserve careful review.
- West Coast Sourdough Seeks Over $15 Million: What California Franchisees Should Know About Rebranding →
A franchisor's announced lawsuit raises a recurring question: can a franchisee rebrand and compete? The answer depends on contracts, confidential information, and California competition law.
- California Landlord Seeks More Than $13,000 a Day in AI Startup Lease Dispute →
A San Francisco landlord alleges an AI startup held over after its lease expired and seeks possession plus more than $13,000 a day. The cited reporting describes the landlord’s allegations and requested relief; this article does not establish the case’s current disposition.
- Irvine's Netlist Reaches $600 Million Patent Licensing Deal With Micron →
Netlist and Micron entered patent license and settlement agreements calling for $600 million in quarterly payments through 2031—a negotiated license, not a court award.
- California Appeals Court Limits Lawsuit Against Foreign Robot Manufacturer →
In Fanuc Corp. v. Superior Court, the Court of Appeal held that personal jurisdiction over a Japanese robot manufacturer was not established on the record presented. The ruling did not address the merits.
- San Diego Sues AppLovin Over Advertising Practices and Alleged Click Manipulation →
San Diego County's civil enforcement suit against AppLovin raises questions about advertising metrics, billable interactions, and disputed charges. The allegations are unproven.
- What Can I Do If a Business Customer Refuses to Pay My Invoice in California? →
What an unpaid invoice proves, which California claims may apply, deadlines, interest and fees, and why collectibility matters.
- California Appeals Court Clarifies Anonymous Lawsuits and Public Statements About Pending Litigation →
A published California appellate decision explains why filing a lawsuit under a pseudonym does not automatically guarantee anonymity and how anti-SLAPP and the fair report privilege can protect litigation-related public statements.
- Groq Shareholders Challenge Nvidia Deal Reported at About $20 Billion: When Does a Technology Transaction Require a Shareholder Vote? →
Former Groq engineers are challenging its reported $20 billion licensing-and-employee-transfer transaction with Nvidia, raising questions about shareholder voting, technology licensing, asset sales, and fiduciary duties.
- McDonald’s Faces AI Pricing Antitrust Lawsuit: When Can Franchisor Pricing Recommendations Raise Antitrust Concerns? →
A new federal lawsuit alleges McDonald’s used centralized pricing technology to coordinate menu prices among franchise restaurants. The case raises questions about franchisee independence, shared data, and Sherman Act liability.
- Apple’s $634 Million Masimo Patent Judgment Grows to About $818.5 Million With Interest →
A federal judge added about $184.2 million in prejudgment interest to Masimo’s $634.3 million patent judgment against Apple. Here is why interest can materially increase litigation exposure.
- Buss Family Challenges Jeanie Buss Over Lakers Stake Sale: What the Dispute Shows About Ownership and Management Control →
Five Buss siblings are challenging Jeanie Buss over a proposed sale of the family’s remaining Lakers stake. The dispute highlights the difference between ownership, voting rights, management control, and transfer restrictions.
- Can a Former Employee Take My Customer List and Compete With Me in California? →
A former employee may compete with you in California, but cannot misappropriate protected trade secrets. Learn when customer information may qualify and what remedies exist.
- Jury Returns Nearly $117 Million Verdict Against Joby Aero in Supplier Trade-Secret Case →
A federal jury returned a nearly $117 million verdict against Joby Aero, Inc., a wholly owned subsidiary of Joby Aviation, Inc., in an NDA and trade-secret case. Learn what the dispute shows about protecting technical IP.
- Orange County and Mind OC Settle Be Well OC Litigation, Clearing Way for Irvine Campus Opening →
Orange County and Mind OC resolved litigation over the Be Well OC campuses, transferring facility control to the County while Mind OC retains the brand. Here are the business-law lessons.
- RealPage Rent-Pricing Case Survives Dismissal: When Can Landlord Pricing Software Create Antitrust Risk? →
A federal court allowed California and other states’ RealPage antitrust claims to proceed. Learn why shared nonpublic rental data—not pricing software alone—is central to the case.
- FTC Reaches Southern Glazer’s Price-Discrimination Settlement: What the Robinson-Patman Act Means for Small Retailers →
The FTC reached a proposed settlement with Southern Glazer’s over alleged price discrimination between large chains and independent retailers. Here is what California businesses should know.
- Ninth Circuit Revives Invisalign Antitrust Claims: When Can a Business Refuse to Deal With a Competitor? →
The Ninth Circuit revived antitrust claims against Align Technology over terminated Invisalign interoperability, clarifying when refusal-to-deal claims may proceed under Sherman Act § 2.
- California Court Clarifies Six-Year Deadline for Certain Promissory Notes—and When Partial Payments Can Restart the Clock →
A 2026 California appellate decision holds that certain promissory notes payable at a definite time carry a six-year limitations period and explains when partial payments may restart the clock.
- Joby–Archer Trade-Secret Ruling: What California Companies Can Protect When an Employee Leaves for a Competitor →
A federal court’s Joby-Archer ruling highlights what California businesses can protect when employees leave for competitors, including trade secrets, company files, and return-of-property obligations.
- California Court: Insurer May Rescind a Policy for a Material Fact It Never Asked About →
An insurance applicant’s disclosure obligations under California law may extend beyond the questions printed on the application when the applicant knows of a material fact affecting the risk and the insurer does not have the means of ascertaining it.
- California Enacts SB 342: New Contractor Payment Rules After a License Lapse →
SB 342 does not eliminate California’s contractor-licensing rule. Beginning January 1, 2027, it creates a narrower, project-specific framework under which payment and disgorgement may turn on which portion of the work was performed while the contractor was licensed or unlicensed.
- OpenAI Sued in California Over Hugging Face Incident: What the State’s New AI Liability Rule Actually Does →
A California nonprofit filed suit against OpenAI Group PBC and OpenAI Foundation on September 29, 2026, seeking injunctive relief following a July cybersecurity incident involving OpenAI models and Hugging Face infrastructure. OpenAI and Hugging Face have both publicly acknowledged the underlying security incident, but the new lawsuit’s claims that OpenAI violated California law remain allegations that no court has adjudicated. The case also highlights a relatively new California rule addressing responsibility when artificial intelligence acts autonomously.
- Winning a California Lawsuit Does Not Automatically Mean Recovering Attorney Fees →
Winning the lawsuit and being legally entitled to recover attorney fees are not the same thing. A new published California Court of Appeal decision arising from an Orange County property dispute shows why.
- California Signs SB 1263: New Rules for Hazardous Disaster Debris Removal →
After a wildfire or other declared disaster, SB 1263 adds a new question to the cleanup checklist: whether the contractor removing hazardous debris is legally qualified to do the work.
- Can I Force My LLC Co-Owner to Buy Me Out in California? →
California LLC members generally cannot demand a buyout on request. Exit options usually turn on the operating agreement, dissolution rights, valuation rules, and negotiating leverage.
- AI Startup Sues Perplexity Over Alleged Trade-Secret Misuse After Technology Collaboration →
A new AI trade-secret lawsuit highlights what startups should document before sharing code, training data, architecture, or technical know-how with a business partner.
- California Court Clarifies Insurance Coverage When Construction and Storm Damage Combine →
A published California decision explains how efficient proximate cause and construction exclusions apply when neighboring construction, rain, runoff, and mud combine in a property loss.
- My LLC Co-Owner Is Taking Company Money. What Can I Do in California? →
California LLC disputes involving company money can raise questions about authority, fiduciary duties, inspection rights, derivative claims, and dissolution.
- California Court Clarifies Shipper Liability After Overheight Cargo Strikes Bridge →
A carrier has its own loading and inspection duties—but those duties do not automatically eliminate a shipper's potential responsibility for its own loading conduct.
- California Court Clarifies the ‘Last Offer Rule’ for Personal Injury Settlement Offers →
A new published California decision holds that when a personal-injury plaintiff makes successive valid, unrevoked section 998 offers and the judgment falls between them, the final offer controls eligibility for statutory benefits.
- California Enacts AB 2042, Clarifying 2027 Service-of-Process and Default Rules →
AB 2042 clarifies how California's 2027 service-of-process and default-judgment framework will apply, while AB 747 remains the law that created the new photo and GPS proof requirements.
- California Court Clarifies When Website Terms Cross the “Yelp Law” Line →
California businesses may protect trademarks and control website access, but they may not contract away consumers’ right to criticize the business. In Scott, Ulta’s particular terms did not cross that line.
- Can I Enforce a Verbal Business Agreement in California? →
California recognizes many oral contracts, but enforceability often turns on what was agreed, what can be proven, and whether the law required the deal to be in writing.
- Ninth Circuit Rules Against Kalshi in California Tribal-Land Prediction Market Dispute →
The Ninth Circuit held two California tribes are likely to succeed in showing that Kalshi’s sports-event contracts constitute unauthorized Class III gaming when entered from tribal lands—but the case is not over.
- Ninth Circuit Rules on GitHub Copilot and Copyright Attribution →
AI-generated code without attribution is not automatically a DMCA § 1202 violation—but that does not mean the output is free from copyright, license, or contract risk.
- How Much Does a Business Litigation Lawyer Cost in California? →
Business litigation is priced by how it is billed, how hard the other side fights, and how much process the dispute requires. This is a plain explanation of the fee structures used in California, what actually drives cost, and where a contract or statute may shift fees to the losing party.
Areas we serve
Mahrouyan Law is based in Costa Mesa and represents clients throughout Orange County, with selected matters accepted elsewhere in California. These pages describe what differs locally.
- Anaheim Business Litigation Attorney →
- Costa Mesa Business Litigation Attorney →
- Huntington Beach Business Litigation Attorney →
- Irvine Business Litigation Attorney →
- Newport Beach Business Litigation Attorney →
- Santa Ana Business Litigation Attorney →