Using litigation to resolve business disputes

Litigation is a very formal and structured process that may be pursued in the State and Federal courts and tribunals. Litigation is generally the most expensive and time-consuming method of dispute resolution.

The procedure in each court or tribunal is governed by strict rules of procedure that are set out in statutes and regulations. Often, a court or tribunal will supplement the applicable legislation by issuing practice notes. Decided cases can also determine correct procedure where the legislation is otherwise deficient, inadequate or unclear.

The basic steps followed in most courts and tribunals are:

• • an application identifying the relief sought and which outlines the facts on which the applicant claims to be entitled to that relief is filed by the moving (also called the originating, initiating or aggrieved) party;
• • the party against whom the claim is brought files an answer to the allegations in the application;
• • the parties exchange documents in their possession that are relevant to the issues in the dispute;
• • documents in the possession of third parties are obtained pursuant to orders issued by the court or tribunal;
• • the parties exchange the evidence their witnesses will give at the trial in the form of affidavits or written statements;
• • a trial is held at which the formal rules of evidence apply to varying degrees; and
• • the judge or other judicial officer that presides at the trial gives a judgment.

See Using litigation to resolve business disputes.