Most people in the field are familiar with the term litigation, but few outside the legal profession understand its real meaning. This process involves settling disputes in the legal system.
The term litigation can refer to various types of disputes, such as disputes involving medical malpractice and parking tickets. We will break down the process into multiple steps to help you understand it.
Contrary to popular belief, litigation is not a process that involves taking a case to court. It is a series of steps before a court even gets to hear the case. A formal lawsuit is just a tiny piece of litigation, but most of the time, the litigation is all done before court even starts.
The Process
The various steps involved in the litigation process are explained in a way that is easy to understand. There are five steps in the process, which can be broken down into notable pieces.
Investigations and Demands
The process of litigation begins when a potential client approaches an attorney. The attorney will review the client’s case to determine if it should be considered. If they accept the case, the litigation begins.
Step one of the litigation process is an informal investigation. This step involves gathering information about the case. The attorney will then collect the necessary details to build a case. This step is significant for the next step, which is sending a demand letter.
Demand Letter
A demand letter will be sent by an attorney or law firm to the client or the other party involved in the case. It summarizes the information gathered during the informal investigation and provides the client with a higher compensation than the attorney expected.
The main goal of a demand letter is to convince the other party that there is strong evidence that shows they are guilty of wrongdoing.
After the other party responds to the demand letter, the defending party offers a lower settlement price. This usually lowers the amount of money that they are willing to pay. The case will not go to court if the two parties can agree on a settlement price.
Why Settle?
The cost of a trial is very expensive. Once a case goes to court, the costs increase due to the new rules and regulations. This is why the attorney and law firm must avoid not only the courthouse but also minimize the amount of work they do.
Other Dispute Options
If the parties can’t reach a settlement price, they will likely resort to other dispute resolution methods. These include mediation, arbitration, or facilitation. These are all alternative dispute resolution forms designed to help resolve the case.
- Mediation
With mediation being an informal process, it can still be very effective if the parties settle. During mediation, an attorney or panel of experts helps both parties negotiate. After the session, the mediator will set a specific dollar amount that the parties can agree on. This can be used to help both parties avoid going to court.
- Arbitration
Unlike mediation, arbitration is more expensive. However, it is also more effective because it allows both parties to avoid court. It allows them to settle without going to trial. Unlike a court case, arbitration is not conducted by a judge or jury. Instead, it is presented to a panel of experts or attorneys who have the necessary knowledge to determine the case’s outcome.
- Facilitation
The last type of alternative dispute resolution that is typically less formal is facilitation. This process involves an attorney or a panel of lawyers who help both parties negotiate a settlement. It can also help both parties come up with a reasonable estimate of the damages.