The First 30 Days of a Commercial Dispute: What Actually Wins (and Loses) Cases
In commercial litigation, the first 30 days matter more than most people realise. Before pleadings close, before mediation is booked, and before anyone files evidence, parties often make decisions that shape the outcome sometimes irreversibly.
This is a practical guide for business owners, directors and decision-makers in Australia who have just found themselves in a serious commercial dispute and want to protect leverage, preserve evidence and move toward a commercial resolution.
If you’re looking for broader background, see our overview of commercial litigation and our approach as litigation lawyers in Brisbane.
Why the first 30 days decide outcomes
Most commercial disputes don’t turn on a single “killer” legal argument. They turn on:
- who controls the information (documents, accounts, communications, system access);
- who looks reasonable (to a judge, mediator, or the other side’s insurer);
- who creates or loses leverage (by timing, restraint, and choosing the right first step).
Early missteps—reactive emails, unclear accusations, or failing to secure documents—can be used against you later. Early discipline often produces earlier resolution.
What not to do in the first 30 days
When a dispute lands, the instinct is to “respond immediately.” In many cases, that is how leverage is lost.
1) Don’t send emotional or sweeping emails
Angry emails feel satisfying in the moment. They can also become Exhibit A. If it may be read by a judge one day, write it that way—or don’t write it at all.
2) Don’t make allegations you can’t particularise
Broad accusations (“fraud”, “theft”, “misuse of funds”) without particulars often backfire. They invite a defamation response, harden positions, and undermine credibility.
3) Don’t let the dispute become a documentation contest you’re losing
If the other side controls the ledger, emails, Xero/MYOB access, bank accounts, or company records, your first priority is to secure and preserve what you can.
Where a director or shareholder is being denied financial access, this issue often becomes the dispute. See: Denied access to company books and records?
4) Don’t assume your accountant can “sort it out”
Accountants are crucial but commercial disputes are rarely just numbers. They involve duties, governance, contractual rights, and litigation risk. Strategy needs to be integrated early.
The first 72 hours: secure evidence and stop the bleeding
Step 1: Preserve documents (quietly and lawfully)
Make sure relevant information is preserved. This may include:
- key emails and attachments (including drafts where available);
- bank statements and transaction histories;
- general ledger, journal entries, and reconciliation files;
- contracts, variations, notices and payment records;
- board minutes, resolutions, and governance documents;
- system access logs (where available).
Important: Preserve evidence lawfully. If you are unsure what you can access or copy, get advice before taking steps that could create risk.
Step 2: Stabilise cashflow and authority
Commercial disputes often escalate because one side fears losing cash control. Where appropriate, consider immediate steps to:
- confirm signing authorities and approval processes;
- document interim financial controls;
- ensure payroll, tax and critical suppliers are managed;
- prevent irreversible transfers or asset dissipation.
Step 3: Create a single “source of truth” chronology
Start a working chronology that records: who said what, when, and what documents support it. This becomes the backbone of early advice, correspondence, and (if needed) the claim or defence.
The next 2–3 weeks: choose the right first legal step
Not every dispute needs a lawyer’s letter on day one. The best first step depends on your objective and the risk profile.
Option A: A targeted letter (not a “big swing”)
A good early letter is narrow, factual and outcome-focused. It should usually:
- identify the specific dispute issues;
- request defined documents or actions by a defined time;
- avoid unnecessary allegations;
- keep a clean path to negotiation.
Option B: A notice that triggers rights
Some disputes turn on strict notice regimes (contract termination, breach notices, calls on security, defaults). Miss the notice requirements and you can lose a strategic lever.
Option C: Urgent relief (when delay will cost you)
If there is evidence of dissipation, lock-out, destruction of records, or other irreparable harm, early court relief (including injunctions) may be appropriate. The threshold is high—but delay can be fatal.
Option D: Do nothing (strategically)
Sometimes the best first step is to gather documents, stabilise the business and prepare the strategy—especially where an immediate response would give the other side information or leverage.
When disputes involve directors or shareholders
Many “commercial disputes” are, in practice, governance disputes: director deadlock, shareholder distrust, lock-outs, payment control, and competing narratives about who has authority.
If that is your fact pattern, these may also be relevant:
How judges and mediators view the “early conduct”
Early conduct often becomes the credibility story. Courts and mediators tend to favour parties who:
- act proportionately;
- make reasonable requests (and respond reasonably);
- preserve documents and comply with obligations;
- avoid theatrics and focus on outcomes.
That doesn’t mean being soft. It means being controlled so when you apply pressure, it lands.
A practical 30-day checklist
- Day 1–3: preserve key documents; secure access; stabilise cashflow and approvals; start chronology.
- Day 4–10: identify legal rights and notice requirements; define objectives (settlement, buy-out, exit, enforcement); assess urgent risk.
- Day 11–20: prepare a targeted letter/notice (if appropriate); gather supporting documents; quantify exposures (best case/worst case).
- Day 21–30: choose the forum strategy (negotiation, mediation, court, insolvency pathway); prepare settlement framework and negotiation position.
When to get advice (and what to bring to the first meeting)
If you are inside the first month of a serious commercial dispute, this is the moment where advice changes the outcome. If you are engaging a lawyer early, bring:
- a one-page summary of the dispute and your objective;
- key contracts and variations;
- the last 10–20 critical emails/messages;
- bank statements/ledger extracts relevant to the dispute;
- a chronology (even rough) of events.
You can also review our general information on commercial litigation and the way we run matters as litigation lawyers.
Final word
Commercial disputes are rarely improved by speed. They are improved by disciplined early steps: preserving evidence, stabilising control, and choosing the right first move.
If you are in the first 30 days of a dispute and the stakes are meaningful, get advice early before the story hardens and before leverage shifts.
