Due to precautions related to COVID-19, we have expanded our options for remote consultations but remain fully operational. Please contact our office to discuss whether a full phone consultation or video conference is appropriate for your situation.

Call Today

When is litigation a smart option to settle a business dispute?

On Behalf of | May 25, 2023 | Business Litigation |

Litigation, the process of resolving legal disputes through the court system, can be a smart option to settle a business dispute under certain circumstances. While litigation is often viewed as a last resort due to its potential costs and time-consuming nature, there are situations where pursuing litigation can be a strategic and favorable choice. 

Here, you will find some key scenarios where litigation may be prudent:

High stakes and an actionable judgment

Litigation may be a sensible choice if the dispute involves substantial financial losses, valuable assets or intellectual property rights. Going to court can provide a formal and enforceable resolution, with a judge or jury assessing the evidence and making a binding decision. Litigation offers the opportunity to protect the interests of the parties involved when a significant amount is at stake.

Failed negotiations and alternative dispute resolution

When negotiation or alternative dispute resolution methods have proven ineffective, turning to litigation becomes a viable option. Despite efforts to reach a settlement through negotiation or mediation, parties may reach an impasse where their positions are irreconcilable. Pursuing litigation can provide a neutral and impartial forum to resolve the dispute in such cases.

Establishing legal precedent and clarifying legal issues

Litigation can be an appropriate choice when there is a need to establish legal precedent or clarify an important legal issue. Pursuing litigation can lead to a court’s interpretation and guidance if a business dispute involves a novel or complex legal question. This is particularly valuable for businesses operating in industries with evolving legal frameworks or regulatory environments.

While litigation should be carefully considered, settling a business dispute in specific circumstances can be a smart option. It is important to assess the costs and weigh the potential benefits before deciding to pursue litigation.


FindLaw Network

Contact The Firm

D&B | Credibility | Platinum | Small Business Directory
Lead Counsel | LC | Rated