Litigation is the process by which a court of law hears and decides a case.

While it may seem feasible, there are considerations surrounding litigation that make it the least satisfactory option. There will be many additional (and potentially unforeseen) costs when you file your case with the court.

Moreover, you cannot set court dates on your own terms. Courts are typically busy and overwhelmed with cases, and it can sometimes take months to set a date even for your first hearing. Even with a scheduled date, there’s no guarantee that your case will be heard on that day as hearings are frequently pushed further back when the other party requests a continuance.

However, there are still a lot of benefits to litigation that make it a smart choice to resolve your issue.

When a case goes through litigation, the parties have an opportunity to discover and exchange evidence and prove their case before a judge or jury.

Although some might see that as a disadvantage due to it being a time-consuming and expensive process, it may be the best course of action to protect your business.

You also have the benefit of receiving a final and binding decision that takes effect immediately. This means that if one party doesn’t follow the decision, then the other party can ask the court to legally enforce the order, which the court will comply with.

Although there is an appeals process that could later change or delay this decision, it is still beneficial if your goal is to obtain a final result.

Contrary to litigation, mediation is a type of conflict resolution that can help keep your case out of court.
Its main purpose is to find a common ground between the parties and come up with a resolution to avoid having to go to court, which can be incredibly time-consuming and expensive.

Thus, this alternative dispute resolution provides a method that is more amicable, more affordable, and less time-consuming compared to traditional litigation. Because it is less adversarial, mediation does not pit one party against the other. Cases in mediation are also overseen by a mediator who must remain neutral to work with both parties, retain the peace, and identify the best solution for everyone.

Many parties with a legal issue, particularly those that are business-related, will try mediation first and only use litigation as a last resort.

While some courts or contracts may require mediation to take place first, the parties are not obligated to settle a case at mediation. However, if they do resolve the dispute, the parties will generally sign an agreement to not go to court and to resolve all other pending disputes via mediation.

But if for any reason one party does not comply with the settlement agreement, then the parties may have to rely on the court to enforce the terms of the agreement.