Understanding Business Disputes in Mississippi
Business owners in Mississippi work hard to grow, operate, and maintain their companies. But even with careful planning, legal disputes can arise—and when they do, they can quickly become costly, time-consuming, and emotionally draining. From unpaid invoices to broken partnerships and false promises, the reality is that no business is immune to conflict.
At Barrett Law, PLLC, we’ve spent decades representing Mississippi businesses in courtrooms, mediation rooms, and negotiation tables. I’m Jonathan Barrett, a Mississippi business litigation attorney committed to helping business owners resolve disputes, recover damages, and protect what they’ve built.
Whether you’re dealing with a breach of contract, a partnership gone wrong, a fraudulent transaction, or simply trying to collect on unpaid debts, knowing your legal rights is the first step. Business litigation in Mississippi is governed by state statutes, court rules, and case law, but it also depends heavily on how your contracts are written and how quickly you act.
This blog will cover the most common causes of business disputes in Mississippi, the legal remedies available, and how to position your company for success if litigation becomes necessary.
Breach of Contract: When One Party Fails to Deliver
Breach of contract is the most common cause of business litigation in Mississippi. These cases arise when one party fails to honor the terms of a written or verbal agreement—whether it’s failing to deliver goods, pay for services, meet deadlines, or fulfill obligations.
Mississippi recognizes valid contracts under common law principles, and most business agreements are enforceable if they include an offer, acceptance, consideration, and clear terms.
Common examples of contract breaches include:
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A supplier fails to deliver materials on time, halting your production.
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A client refuses to pay after work is completed.
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A vendor violates exclusivity or pricing terms.
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A contractor walks off a job before finishing.
Under Mississippi law, the injured party in a breach of contract case may sue for damages, specific performance, or cancellation. The Mississippi Supreme Court has upheld the right to recover actual damages as well as lost profits when provable.
We work with businesses throughout Mississippi to identify the breach, preserve written evidence (emails, invoices, signed agreements), and present a compelling legal claim for full recovery.
Partnership and Shareholder Disputes: When Business Owners Clash
Partnership disputes can become deeply personal, especially in family-run businesses or closely held LLCs. These conflicts often arise when co-owners disagree over the direction of the business, finances, or management responsibilities.
Some common partnership disputes involve:
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One partner misusing company funds or property.
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Disagreements over salaries, distributions, or reinvestment.
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Accusations of self-dealing or breach of fiduciary duty.
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Deadlock in voting or strategic decisions.
Mississippi courts will often enforce operating agreements, partnership agreements, or shareholder bylaws. When no written agreement exists—or when the agreement is silent on a specific issue—courts will look to common law principles or the Mississippi Uniform Partnership Act or Limited Liability Company Act (Miss. Code Ann. § 79-29-101 et seq.).
Legal remedies may include:
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Forced buyouts.
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Judicial dissolution of the business.
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Injunctions to stop misuse of assets.
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Claims for breach of fiduciary duty and damages.
Barrett Law, PLLC assists business owners with both pre-litigation strategy and courtroom enforcement when partners cannot resolve their differences amicably.
Non-Payment and Accounts Receivable Disputes
Many Mississippi businesses struggle with unpaid invoices or slow-paying clients. When polite requests and late fees don’t work, legal action may be required.
Common payment-related claims include:
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Failure to pay for services rendered.
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Returned checks or refused payments.
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Clients disputing charges after accepting delivery.
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Recurring contract clients refusing to renew or pay final invoices.
In Mississippi, businesses can file suit in justice, county, or circuit court depending on the amount in dispute. Legal claims may include breach of contract, account stated, or open account under Miss. Code Ann. § 11-7-161.
It’s important to act quickly. Mississippi imposes a three-year statute of limitations on many debt-related lawsuits, and waiting too long can forfeit your right to sue.
Our firm often helps clients file demand letters, negotiate settlements, and if necessary, pursue full court judgments to recover what’s owed—plus interest and court costs when applicable.
Fraud and Misrepresentation in Mississippi Business Deals
Fraud occurs when one party intentionally misrepresents material facts to induce another into a business deal. Unlike a simple breach of contract, fraud involves deception, and proving it can entitle the victim to punitive damages in some cases.
Examples of business fraud include:
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A seller falsifying income or financial statements during a business sale.
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A buyer concealing the true purpose of an acquisition.
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A vendor lying about product quality or capabilities.
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A partner misrepresenting business assets or liabilities.
Under Mississippi law, fraud claims must show:
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A false representation.
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Knowledge of its falsity.
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Intent to deceive.
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Justifiable reliance by the victim.
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Resulting damages.
These are complex cases, but Barrett Law, PLLC has the experience to investigate, build the necessary factual record, and take action in state or federal court if necessary.
Who Is Affected by Business Disputes—and How We Can Help
Business litigation affects companies of all sizes—from solo contractors to regional corporations. Common clients include:
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Service providers owed money by clients.
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Manufacturers with broken supply chain contracts.
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Shareholders or partners dealing with internal mismanagement.
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Small businesses affected by fraud or misleading agreements.
At Barrett Law, PLLC, we represent both plaintiffs and defendants in business litigation. Whether you need to file suit or respond to a demand letter or complaint, we can guide you through the process with confidence.
Understanding the Legal Framework in Mississippi
Business litigation in Mississippi is governed by a variety of laws depending on the nature of the dispute. Some key sources include:
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Mississippi Code Annotated Title 75 and Title 79 (contracts, business organizations)
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Miss. Code Ann. § 15-1-49 (three-year statute of limitations for breach of contract)
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Mississippi Rules of Civil Procedure (governing how lawsuits are filed and litigated)
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Federal law, where applicable in fraud or multi-jurisdiction disputes
We work closely with clients to ensure proper jurisdiction, venue, pleadings, and strategy are in place from day one.
Practical Tips to Protect Your Business from Litigation
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Put everything in writing. Oral agreements are harder to enforce.
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Use professionally drafted contracts with clear terms, payment deadlines, and dispute resolution clauses.
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Monitor receivables closely and take early action on late accounts.
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Keep records of communications, invoices, and performance.
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Conduct due diligence on new partners or clients.
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Consult with an attorney at the first sign of trouble.
Barrett Law, PLLC is available to provide proactive contract drafting and litigation support when disputes arise.
FAQs About Mississippi Business Disputes
What’s the difference between breach of contract and fraud?
Breach of contract occurs when a party fails to perform as promised. Fraud involves intentional deception. The legal standards and potential damages differ significantly.
Can I sue a former business partner for taking clients?
Yes, depending on your partnership or operating agreement. If the conduct breaches fiduciary duties or non-solicitation clauses, legal action may be appropriate.
How long do I have to file a business lawsuit in Mississippi?
Most business-related lawsuits must be filed within three years of the incident, under Miss. Code Ann. § 15-1-49. Some claims, like those involving written contracts, may have different timeframes.
Can I recover attorney’s fees?
Only if your contract includes an attorney’s fees provision or if a specific statute allows for it. Most Mississippi cases follow the “American Rule,” meaning each side pays its own fees unless otherwise agreed.
Do I have to go to court?
Not always. Many business disputes are resolved through mediation, arbitration, or negotiated settlements. But having a litigation-ready lawyer improves your leverage.
Can I sue for future lost profits?
Yes, if they can be proven with reasonable certainty. Courts require documentation, industry evidence, and expert testimony in some cases.
What if the other party is in another state?
You may be able to sue in Mississippi if there are sufficient business contacts. We help clients evaluate jurisdiction and venue issues in interstate disputes.
What happens if I’m sued?
You must respond promptly to avoid a default judgment. Call a lawyer immediately and gather all documentation related to the claim.
Can I sue a vendor or supplier for delivering defective products?
Yes. You may have a claim for breach of contract, breach of warranty, or product liability depending on the circumstances.
What is a fiduciary duty?
A fiduciary duty is a legal obligation to act in another’s best interest. Partners, shareholders, and LLC members owe these duties to one another under Mississippi law.
Has Your Business Suffered Losses and Damages in Mississippi? Call Mississippi Business Litigation Attorney Jonathan Barrett 24/7/365 at (601) 790-1505 for Your FREE Consultation
When your business faces a serious dispute, quick and decisive legal action matters. Whether you’ve been wronged by a client, vendor, partner, or competitor, Barrett Law, PLLC is here to help you enforce your rights and recover what your business is owed. We handle breach of contract, fraud, non-payment, and partnership litigation across Mississippi.
We represent clients throughout the Mississippi Gulf Coast, Central Mississippi, Northern Mississippi, and Southern Mississippi, including the cities of Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Olive Branch, Tupelo, Meridian, Pearl, Madison, Greenville, Oxford, Clinton, Horn Lake, and Brandon, MS.