Holiday Season Red Flags: Business Disputes That Spike in December (and How to Protect Your Company Now)
By the Simpson-Cannon Law Firm – Florida Business Litigation & Risk Management Counsel
The holiday season is one of the busiest—and most legally volatile—times of the year for Florida businesses. While December brings increased sales, year-end deadlines, and the push to close out Q4, it also brings a predictable spike in business disputes.
At our firm, we routinely see the same red flags every December. The businesses that identify these issues early avoid costly litigation. The ones that ignore them often end up calling us in January—when the problem has already snowballed.
Here are the most common holiday season business disputes and what you can do right now to protect your company.
1. Vendor Delays That Derail Operations
Holiday shipping backups, staffing shortages, and seasonal demand all contribute to vendor delays.
But here’s the real risk:
When your vendor can’t perform, your company often becomes liable to your customers.
Red Flags to watch for:
Missed or extended delivery timelines
“Force majeure” being raised casually or incorrectly
Sudden changes in production capacity
Vendors going quiet or becoming evasive
What to do now:
Review your contracts for notice requirements, service milestones, and remedies. Do not wait until a breach is complete—many rights are lost if notice is not given promptly.
2. Year-End Payment Failures
December is notorious for cash-flow strain, especially for smaller vendors and service providers.
Many businesses “stretch” payables to get through the month.
Common triggers:
Clients delaying payment until January
Partners disputing whether bonuses or commissions are due
Vendors demanding early payment due to their own cash-flow issues
Risk:
By the time you get paid—or realize you won’t—your legal options may be narrower.
Act now:
Send end-of-year statements, demand adequate assurances, or tighten payment terms for known slow payers.
3. Partnership & Shareholder Tensions Boil Over
December forces uncomfortable conversations:
revenue performance, distributions, capital contributions, tax obligations, and next year’s strategy.
For strained partnerships, that pressure exposes fractures.
Warning signs:
Sudden secrecy or unilateral decision-making
Resistance to approving budgets or distributions
Disputes over year-end personal expenses charged to the company
Unexpected resignation threats
If the relationship feels shaky now, it rarely improves in January.
4. Commercial Lease Issues Surface
Landlords and tenants both feel financial pressure during the holidays.
Typical December disputes:
CAM reconciliation conflicts
Delinquent rent or late fees
Disagreements over holiday or seasonal usage
Repairs or maintenance demands that have been ignored all year
Even minor lease issues can accelerate when businesses are trying to close out their books.
5. Staffing Shortages Trigger Contract & Compliance Problems
Holiday PTO, illness surges, and seasonal turnover all affect staffing.
Legal risks:
Breach of service-level agreements
Overtime and wage compliance violations
Missed contractual deliverables
Increased negligence or supervision claims
If your workforce is stretched thin, your business’s liability exposure expands.
6. End-of-Year Cash Flow Disputes
December magnifies financial disagreements, especially in industries with high seasonal swings.
Examples:
Disputes over bonuses or revenue-sharing
Battles over who is responsible for cost overruns
Last-minute attempts to renegotiate contract terms
Failure to close out projects as promised
If a party is trying to “fix” the year-end numbers, it usually shows up as a dispute.
How to Protect Your Company Before a December Dispute Turns Into Litigation
A few proactive steps can reduce your actual risk dramatically:
Tighten contract enforcement now, not after something goes wrong
Issue written notices immediately if a vendor or partner is not performing
Document everything, including delays, payment attempts, and missed deadlines
Address partnership tensions early, before they escalate
Consult counsel at the first sign of trouble, not the last minute
Most December disputes are preventable—if you respond strategically and promptly.
If You See a Red Flag, Call Us Before It Turns Into a Lawsuit
If you’re noticing any of the warning signs above, our firm can help you assess the risk, enforce your rights, and protect your business before problems compound.
You do not need to wait until a breach is complete.
You do not need to wait until January.
Contact our office today to schedule a strategic consultation and get ahead of potential holiday-season disputes before they hit your bottom line.