In what situation is litigation typically avoided?

Litigation is typically avoided in scenarios where there is a potential for resolution through less adversarial means. When both parties have clear agreements, misunderstandings and disputes are minimized, making it less likely for litigation to arise. Similarly, when initial appraisals are favorable, this often indicates that the parties are in agreement on the value of the claims or losses, further reducing the likelihood of disputes escalating to litigation.

Moreover, when negotiations are proceeding effectively, this suggests that the parties are actively discussing and working towards a mutually acceptable solution. Effective negotiations can lead to settlements that satisfy both parties, making litigation unnecessary. The combination of these situations illustrates a collaborative approach to conflict resolution, enabling parties to avoid the costs and time associated with litigation. Thus, all of these factors contribute to scenarios in which litigation is typically avoided.