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When considering litigation, a business owner should be aware of his or her options. In addition to the courtroom, there are other forums that might be appropriate, depending on the specific needs of the business. Alternative dispute resolution, described below, may be a desirable alternative to litigation or, if the cause of action is of an eligible size, small claims court may be another venue for an owner to consider. Class actions may also be utilized by a business in certain circumstances, or a business owner may find himself or herself named as a defendant in a class action. A business owner must therefore understand the basic principles involved.
Litigation Procedure
There are many steps that a litigant must follow when pursuing a judicial resolution to an issue. The civil litigation process is relatively uniform and is controlled by both federal and state rules. The process itself involves a considerable volume of work whether or not the case actually goes to trial. Required tasks include everything from filing an initial pleading (complaint, answer, counterclaims, third party actions) to pursuing an appeal if the judgment is found to be unsatisfactory. The steps that are usually involved in litigation are:
Small Claims Court
Business owners should be aware of small claims court, a more informal court that deals with everything from nuisance charges to minor money disputes. Small claims court eligibility varies from jurisdiction to jurisdiction. Generally, it is the first place a litigant will go when there is a business issue involving small monetary damages.
Class Action
A class action involves one or two representative plaintiffs pursuing litigation on behalf of a larger group of people similarly aggrieved. The cause of action could be anything from construction law to toxic waste disposal to securities fraud. The fundamental purpose of a class action is to combine similarly situated litigants with similar causes of action, thereby gaining efficiency by consolidating many cases into one large case.
Alternative Dispute Resolution (ADR)
Alternative dispute resolution is a litigation alternative that covers both arbitration and mediation. Arbitration is a process that is less formal than a trial. It is generally less costly and has less formal procedural rules; however, it also has limitations not present in courtroom litigation. Mediation is a more informal process than arbitration, and is facilitated by a neutral third party, a trained mediator, who hears both sides of a dispute and then attempts to reach a resolution through mutual compromise. Both of these methods of conflict resolution are used by businesses in an attempt to reduce costs and time and avoid courtroom litigation.
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Litigation Procedure
There are many steps that a litigant must follow when pursuing a judicial resolution to an issue. The civil litigation process is relatively uniform and is controlled by both federal and state rules. The process itself involves a considerable volume of work whether or not the case actually goes to trial. Required tasks include everything from filing an initial pleading (complaint, answer, counterclaims, third party actions) to pursuing an appeal if the judgment is found to be unsatisfactory. The steps that are usually involved in litigation are:
- Filing of an initial pleading and response
- Motions (requests that a judge do something like allow specific evidence)
- Discovery Process
- Pretrial conferences to organize how the trial will proceed
- Trial
- Judgment
- Appeals
Small Claims Court
Business owners should be aware of small claims court, a more informal court that deals with everything from nuisance charges to minor money disputes. Small claims court eligibility varies from jurisdiction to jurisdiction. Generally, it is the first place a litigant will go when there is a business issue involving small monetary damages.
Class Action
A class action involves one or two representative plaintiffs pursuing litigation on behalf of a larger group of people similarly aggrieved. The cause of action could be anything from construction law to toxic waste disposal to securities fraud. The fundamental purpose of a class action is to combine similarly situated litigants with similar causes of action, thereby gaining efficiency by consolidating many cases into one large case.
Alternative Dispute Resolution (ADR)
Alternative dispute resolution is a litigation alternative that covers both arbitration and mediation. Arbitration is a process that is less formal than a trial. It is generally less costly and has less formal procedural rules; however, it also has limitations not present in courtroom litigation. Mediation is a more informal process than arbitration, and is facilitated by a neutral third party, a trained mediator, who hears both sides of a dispute and then attempts to reach a resolution through mutual compromise. Both of these methods of conflict resolution are used by businesses in an attempt to reduce costs and time and avoid courtroom litigation.
Call us and get the Conclusion you deserve
