litigation
Definition
Litigation is the formal process of resolving a legal dispute through the court system, from the initial filing of a lawsuit all the way through a judge or jury reaching a final decision. It involves multiple stages including exchanging evidence, filing legal documents, and potentially going to trial. The process can take months or even years to complete and typically requires hiring an attorney.
Example
If a customer claims your product injured them and demands $50,000 in compensation, and you cannot reach a settlement outside of court, the matter enters litigation where both sides present their case to a judge.
Watch Out
Litigation is almost always expensive and time-consuming, so many business owners choose to settle disputes out of court even when they believe they are in the right.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.