Criminal vs. Civil Cases: What Every Business Owner Needs to Know

Legal problems can be complicated, especially when both criminal and civil cases are involved. Business owners often ask two key questions:

1. What is the difference for me if I am suing someone who is also facing criminal charges?

2. What if I or my business am the one facing both a criminal and civil case?

This blog breaks down the differences and explains what’s at stake in each situation.

The Basics: Criminal vs. Civil Cases

Criminal cases are brought by the government (state or federal prosecutors). The goal is to punish unlawful conduct, such as fraud, theft, or assault. Penalties can include jail, probation, or fines paid to the government. The burden of proof is “beyond a reasonable doubt,” which is very high.

Civil cases are brought by private parties (like individuals or businesses). The goal is to compensate the harmed party, often with money damages or court orders to stop harmful behavior. The burden of proof is much lower: “preponderance of the evidence,” which means more likely than not.

Put simply: criminal law punishes, while civil law compensates.

1. Suing Someone Who Is Also Facing Criminal Charges

If the person you want to sue is also facing criminal charges, here’s what you need to know:

• Separate cases: Criminal and civil cases often proceed on different timelines, even if they involve the same facts.

• Evidence advantage: Criminal cases may generate evidence (documents, testimony, investigative reports) that you can use in your civil lawsuit.

• Criminal conviction helps: If the person is convicted, that finding can be powerful evidence in your civil case.

• Different standards: Even if the person is acquitted in the criminal case, you could still win in civil court because the standard of proof is lower.

• Timing issues: Sometimes civil cases are paused (“stayed”) until the criminal case is resolved, especially if the defendant argues that running both at once is unfair.

Takeaway: You don’t have to wait for the criminal case to end before suing, but strategy and timing matter. A lawyer can help you maximize the benefit of the criminal process for your civil claim.

2. When You or Your Business Face Both Criminal and Civil Cases

If you or your business are on the receiving end of both criminal and civil cases, the stakes are higher:

• Parallel exposure: You could face criminal penalties (like fines or even jail time) and civil damages (like money judgments or injunctions).

• Conflicting strategies: Statements made in your civil case could be used against you in the criminal case. This makes careful coordination essential.

• Stays and delays: Defendants often ask the court to pause the civil case until the criminal matter is resolved to avoid self-incrimination.

• Insurance limits: Even if you have insurance that might cover civil claims, it usually won’t cover criminal penalties.

  
  

Takeaway: If you or your business face both types of cases, you need an integrated legal strategy that balances defense in both arenas. What helps in one case might hurt in the other.

Final Thoughts

Understanding the difference between civil and criminal cases is critical for business owners. If you’re suing someone also facing criminal charges, you may gain an advantage—but timing and strategy matter. If you or your business are the ones facing both types of cases, the risks are serious and intertwined.

The bottom line: criminal cases punish; civil cases compensate. And sometimes, both can happen at once. Having the right counsel to navigate both tracks can protect your business, your reputation, and your future.

This blog is for informational purposes only and not legal advice. If you’re dealing with overlapping civil and criminal issues, consult with experienced counsel immediately.