In an age where markets shift overnight, and policies evolve faster than supply chains can adapt, the legal framework supporting business operations is no longer just a back-office formality—it’s a strategic asset.
Across the U.S., Mexico, and Latin America, companies are increasingly entangled in complex commercial disputes that have little to do with bad business decisions, and everything to do with systemic disruption. Force majeure, delayed deliveries, terminated exclusivities, sudden price renegotiations—these are no longer fringe occurrences. They are becoming routine in an environment defined by inflation, protectionism, and supply instability.
We’ve entered a new era of business litigation, where the courtroom is not just a place of last resort but part of a proactive risk management strategy.
How Are Contract Disputes Shaped by Changing Economic Conditions?
Take, for example, the recent wave of litigation we’re seeing from companies trying to either enforce or escape the terms of long-standing contracts. In today’s volatile economic environment, tariff shocks have drastically changed the cost structures of thousands of
cross-border agreements. This is especially true in industries like manufacturing, electronics, and automotive, where supply chains and pricing are tightly interwoven.
What used to be profitable supply contracts are now often economically unfeasible. Suddenly, companies face steep increases in the costs of raw materials, transportation, and production, sometimes jumping as much as 25% or more due to new trade policies or tariffs. This leads to a critical legal question: does such a significant cost increase give a party the right to terminate the contract or renegotiate its terms?
The answer is rarely straightforward and almost always depends on the specific language of the contract. Many agreements include clauses like force majeure or hardship provisions, which are meant to address unforeseen events that make fulfilling contractual obligations difficult or impossible. However, these clauses are often written in vague or overly narrow terms that courts may not uphold under scrutiny.
Judges have become more cautious in interpreting these provisions, particularly when contracts fail to clearly define what events truly qualify as “commercial impossibility.” For example, a force majeure clause might list natural disasters or acts of war but may not explicitly cover economic hardships such as tariff increases or inflation. Without clear language, courts may rule that these economic changes do not justify contract termination or renegotiation.
This lack of clarity puts companies in a difficult position—one side may argue that the changed economic landscape fundamentally alters the agreement, while the other may insist that the contract must be honored as originally written. As a result, contract disputes in this area are becoming more common and more complex, requiring skilled contract lawyers who can interpret these nuances and guide clients through the challenges.
What Role Does Supply Chain Fragmentation Play in Contract Disputes?
Supply chain fragmentation is another pressure point. A single delay upstream can create a ripple effect of breach claims, penalties, and operational losses downstream. For global companies, these aren’t just domestic issues. They require cross-border enforcement strategies, jurisdictional coordination, and multilayered dispute-resolution mechanisms.
This complexity is why companies need experienced contract dispute lawyers and breach of contract attorneys who understand how to navigate both local and international challenges effectively.
How Can Legal Preparedness Make a Difference in Business Litigation?
This is where litigation stops being just a reaction to problems and instead becomes a strategic advantage. Companies that view legal preparedness as a core part of their contract design and business planning are consistently better positioned to manage disputes effectively. Rather than waiting for conflicts to arise, these businesses take proactive steps to minimize risks and protect their interests.
For example, we work closely with clients to thoroughly audit their key contracts and agreements. This process helps identify potential weak points, outdated clauses, or ambiguous language that could lead to costly disputes down the line. By spotting these issues early, companies can renegotiate terms or add clarifications that reduce the chance of litigation.
Additionally, building clear escalation pathways within contracts or internal policies helps avoid unnecessary lawsuits. This might include mediation or arbitration steps designed to resolve conflicts quickly and efficiently before they reach the courtroom. Such mechanisms save time, money, and business relationships.
When disputes do escalate, having tailored enforcement strategies is crucial. This means knowing exactly how to proceed legally to protect assets, enforce rights, or negotiate settlements in a way that aligns with the company’s broader goals. Being prepared with these strategies turns litigation from a potential liability into a powerful tool.
Why Should Companies Work with a Business Litigation Attorney Before Disputes Arise?
As the economic and geopolitical context continues to evolve, business litigation attorneys
will remain a constant—and potentially costly—companion. But for those who anticipate it,
structure their risk intelligently, and take the law as seriously as the balance sheet, it doesn’t have to be a liability. It can be a strategic lever for stability, continuity, and growth.
Need Expert Help Navigating Contract Disputes or Business Litigation?
If your company is facing contract challenges or you want to prepare for potential disputes, contact a contract dispute lawyer at Saltiel Law Group today. Our experienced contract lawyers and business litigation attorneys specialize in protecting businesses through careful legal planning, dispute resolution, and enforcement strategies. Don’t wait until a breach of contract becomes a crisis—call Saltiel Law Group now for a consultation and safeguard your business’s future.
About Matthew Carcano
Matthew Carcano is a partner and head of the Litigation Department at Saltiel Law Group. He leads a team of attorneys and paralegals in handling complex business litigation matters across industries and jurisdictions. In addition to overseeing case strategy and litigation, Matthew is responsible for the professional development of all attorneys and paralegals within the firm. With extensive experience in state and federal courts, as well as arbitration forums, he is known for his strategic litigation approach and persuasive advocacy. Fluent in Spanish, Matthew advises both U.S.-based and Latin American clients in cross-border and domestic disputes.
