What is a third-party committee?Explanation of the difference from the internal investigation committee and the investigation method
2023/8/16
[Webinar] Preventing scandals from the perspective of compliance and risk management Part 1
2023/8/17
Civil litigation involves the resolution of disputes between companies, between companies and individuals, and between individuals through court procedures.How well do you know what to do if your company is sued (or needs to be sued) by an employee, business partner, competitor, etc.?It is important to assume what kind of litigation risks your company faces, understand the basic knowledge of civil litigation, and prepare for emergencies.
What is a civil lawsuit (civil trial) in a company?
Before explaining civil lawsuits (civil trials) in corporate activities, I will first explain the basic knowledge about civil lawsuits.
What is a civil lawsuit (civil trial)?
When a dispute of some kind occurs between individuals, between companies, or between a company and an individual, it becomes a civil case when the parties file a claim for damages with the court.In order to settle a civil case, a civil lawsuit clarifies the claims of both parties, submits evidence, and the judge renders a judgment or establishes a settlement.
Difference from criminal lawsuit (criminal trial)
There are three main differences between civil and criminal courts. The first is the parties to the lawsuit.In a civil lawsuit, anyone can file a lawsuit as a plaintiff, and the parties face the trial on an equal footing and both parties make their claims.On the other hand, a criminal trial is a form in which a police officer and a public prosecutor investigate a suspect suspected of having committed a crime, and the public prosecutor indicts the suspect.
The second is about how to resolve disputes.In civil lawsuits, if both the plaintiff and the defendant are satisfied, the case may end with a settlement, but in criminal lawsuits, there is no option for settlement, and the judgment ends when the defendant is found guilty or not guilty.
The third point concerns the content of the judgment.In a civil lawsuit, the plaintiff's demands are met, and even if compensation is incurred, the plaintiff will not be charged with a crime, but if found guilty in a criminal lawsuit, some form of punishment will always be imposed.
Cases in which a company is sued in a civil lawsuit (civil lawsuit)
We will explain the main examples of civil lawsuits filed by companies such as employees, individual outsourcing, business partners and competitors.
Civil litigation cases filed by employees
The following are the four most common types of civil lawsuits filed by employees.
・Unfair dismissal
Even problematic employees need a “just cause” and legal procedures to dismiss them.Even if the employee is at fault, if there is a flaw in the company's procedures, it will be treated as unfair dismissal, so be careful.
・ Industrial accident
Accidents at work can also result in industrial accidents due to negligence on the part of the employee.Companies have a “duty of safety consideration” to consider the health and safety of their employees, and if they violate it, they may be held liable for damages.
・ Unpaid wages, overtime, retirement allowance
Unpaid wages and overtime pay may result in lawsuits seeking payment of delay damages and surcharges.Since there are many cases of misunderstandings among employees, it is also important to check the work rules on a regular basis.
・Power harassment and sexual harassment
Companies have a duty to consider the working environment of their employees.Even if harassment is a problem between employees, the company may be held responsible.
Cases of civil lawsuits filed by business consignment (individual)
There are the following cases where a company is sued by an individual who has a contract with a company in the form of outsourcing.
・Unpaid outsourcing fees
Even if the subcontractor has completed the work based on the subcontractor contract, the remuneration that should be paid has not been paid even after the due date, or if an incorrect billing process has been carried out.This may lead to a lawsuit for payment claims.
・Infringement of intellectual property rights
Infringement of intellectual property rights, such as copyright infringement using copyrighted material without permission, trademark infringement using similar trademarks, design right infringement using similar designs to product designs, etc.Subject to claims for damages and injunctive relief.
・Disguise contract
A disguised contract is an act of camouflaging in the form of a business consignment contract even though the worker is actually a worker.It is prohibited by the Worker Dispatch Law etc. as an act that violates the rights and welfare of workers.
・Violation of the Subcontract Act
Acts such as refusal to accept or return deliverables, rework without justifiable reasons, and requests to provide unfair economic benefits are violations of the Subcontract Act and may be subject to liability for damages.
Civil litigation cases filed by business partners and competitors
In the following cases, a company may be sued by a business partner or competitor.
・Collection of receivables
If you are unable to pay your business partner on time due to a deterioration in business performance, etc., the creditor will demand collection.If the dispute cannot be resolved through telephone or face-to-face negotiations, a lawsuit will be filed.
・Leakage of personal information
If a customer's personal information is leaked, it will affect not only the customer but also the business partners.If a loss of social credibility leads to a decrease in profits or sales, business partners may hold you accountable.
・Suspicion of patent infringement
Patent infringement is the unauthorized use of a patented invention.The patent owner may file a lawsuit if the use of technology or imitation of manufacturing methods is suspected.
・Breach of contract
Non-fulfillment of a contract, such as failure to carry out a contract concluded under mutual agreement or failure to fulfill promised obligations.In some cases, the other party may suffer economic losses, which may lead to litigation.
Evidence required for civil lawsuits (civil trials)
What kind of evidence would be required if the company actually filed a civil lawsuit (civil lawsuit) in the above-mentioned case?We also introduce forensic investigation, which is an effective means of collecting evidence.
Evidence required for civil lawsuits
Appropriate evidence must be presented in order for both parties to make a case in a civil lawsuit.Required evidence includes:
Documentary evidence in all document formats, including official documents such as contracts and invoices, exchanges of e-mails and reports, and diaries, are covered.Non-documents such as telephone call records, video recordings, and photographs are also treated as quasi-documents.
The results of all investigations and verifications related to lawsuits, as well as the appraisal results provided by experts for cases requiring advanced knowledge, are also important evidence.The plaintiffs and defendants, who are the parties involved in the dispute, are interrogated at the trial, and the third parties who are asked to testify are also interrogated as witnesses.
Request a forensic investigation and gather evidence
As mentioned above, the amount of evidence required in a civil lawsuit is enormous.A forensic investigation is a specialized method of investigating and collecting the necessary evidence and using it in an appropriate form in a trial.Asking a forensic investigative company to gather evidence is an important key to smoothly resolving a civil lawsuit.
Forensic investigations are effective in gathering evidence in civil lawsuits (civil trials)
The amount of evidence in a civil lawsuit increases with the complexity of the case, making it extremely difficult to collect within the company alone.Insufficient evidence may result in an adverse verdict in court.A forensic investigation by a specialized investigative company is an effective means of gathering the evidence necessary for a civil lawsuit.
What is a forensic investigation?
Forensics is a word that means "forensics", and it is an investigation that collects and analyzes legal evidence.By gathering the necessary evidence and properly analyzing it, you will be fully prepared for litigation.The demand for digital forensics for digital data such as e-mails is increasing.
Outsource the forensic investigation to an investigative company with a proven track record
In civil lawsuits by companies, it is difficult for employees to investigate on their own.If the company does not have the knowledge and technical know-how to conduct an investigation, it will not be possible to conduct an investigation properly, and there is a risk of causing secondary damage if there is a mistake in data handling.Since there is a limit to what you can do on your own, it is wise to ask a research company that has a proven track record and technical capabilities.
We recommend an AI-based research company that can conduct high-precision and rapid research
Many of the investigations conducted with forensic methods are digital forensics.The use of AI (artificial intelligence) is indispensable in the field of digital forensics.It takes too much time to conduct investigations using only human power because it refers to and analyzes a huge amount of digital data.In order to conduct quick and accurate investigations, research companies are required to make effective use of AI.
[Related article] What is a forensic investigation?Commentary on necessary cases, points to note, and examples
For investigations necessary for civil lawsuits (civil trials), go to FRONTEO, a leading company in forensic investigations.
"FRONTEO" has more than 2000 forensic results and has high technical capabilities utilizing AI technology.Utilizing the latest technology, including an AI engine developed in-house, we provide a one-stop approach to data identification, preservation, processing, review, and creation of submission data, leading to swift resolution of civil lawsuits.
FRONTEO, which has been conducting forensic investigations since the dawn of digital forensics in Japan, has faced various issues as a pioneer of fraud investigations in Japan since its establishment in 2003.We have an overwhelming track record of solving various cases through forensic investigations, including data falsification, internal fraud investigations, labor issues, harassment issues, and security cases. Ability to respond to civil lawsuits.
[Related article] Forensic Investigation ｜ Proposing investigations that meet customer needs and conducting effective investigations
